248 249 250 251 252 253 254 9,622.35 32.60 1 32,60 9,654.90 32.55 1 32,55 9,687.40 32.50 1 32.50 9,719.85 32.45 1 32.45 9,752.25 32.40 1 32.40 9,784.60 32.35% 1 32.35 9,816.90 32.30 1 32.30 Question: Suppose that the level of competition decreases in the coal market and the firm now has the ability to affect the price of coal. After the level of competition decreases, will the new MRP, at any given level of production, be less than or greater than the MRP in the table above? The new MRP at any given level of production will be equal to the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must increase the price of coal. The coal firm is now facing a perfectly elastic demand curve. The new MRP at any given level of production will be less than the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must reduce the price of coal. The coal firm is now facing a downward sloping demand curve. The new MRP at any given level of production will be equal to the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must decrease the price of coal. The coal firm is now facing a downward sloping demand curve. O The new MRP at any given level of production will be above the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must reduce the price of coal. The coal firm is now facing an upward sloping demand curve.
248 249 250 251 252 253 254 9,622.35 32.60 1 32,60 9,654.90 32.55 1 32,55 9,687.40 32.50 1 32.50 9,719.85 32.45 1 32.45 9,752.25 32.40 1 32.40 9,784.60 32.35% 1 32.35 9,816.90 32.30 1 32.30 Question: Suppose that the level of competition decreases in the coal market and the firm now has the ability to affect the price of coal. After the level of competition decreases, will the new MRP, at any given level of production, be less than or greater than the MRP in the table above? The new MRP at any given level of production will be equal to the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must increase the price of coal. The coal firm is now facing a perfectly elastic demand curve. The new MRP at any given level of production will be less than the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must reduce the price of coal. The coal firm is now facing a downward sloping demand curve. The new MRP at any given level of production will be equal to the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must decrease the price of coal. The coal firm is now facing a downward sloping demand curve. O The new MRP at any given level of production will be above the MRP in the table above. This is due to the fact that in order to sell an additional unit of coal, the firm must reduce the price of coal. The coal firm is now facing an upward sloping demand curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:248
249
250
251
252
253
254
9,622.35
32.60
1
32,60
9,654.90
32.55
1
32,55
9,687.40
32.50
1
32.50
9,719.85
32.45
1
32.45
9,752.25
32.40
1
32.40
9,784.60
32.35%
1
32.35
9,816.90
32.30
1
32.30
Question:
Suppose that the level of competition decreases in the coal market and the firm now has the ability
to affect the price of coal. After the level of competition decreases, will the new MRP, at any given
level of production, be less than or greater than the MRP in the table above?
The new MRP at any given level of production will be equal to the MRP in the table above. This is due to the
fact that in order to sell an additional unit of coal, the firm must increase the price of coal. The coal firm is
now facing a perfectly elastic demand curve.
The new MRP at any given level of production will be less than the MRP in the table above. This is due to the
fact that in order to sell an additional unit of coal, the firm must reduce the price of coal. The coal firm is now
facing a downward sloping demand curve.
The new MRP at any given level of production will be equal to the MRP in the table above. This is due to the
fact that in order to sell an additional unit of coal, the firm must decrease the price of coal. The coal firm is
now facing a downward sloping demand curve.
O The new MRP at any given level of production will be above the MRP in the table above. This is due to the
fact that in order to sell an additional unit of coal, the firm must reduce the price of coal. The coal firm is now
facing an upward sloping demand curve.
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