Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that, the efficient scale. firm. Further, the quantity the firm produces in long-run equilibrium is True or False: This indicates that there is excess capacity in the market for razors. O True False at the optimal quantity for each Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the externality implies that there is too much entry of new firms in the market.
Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that, the efficient scale. firm. Further, the quantity the firm produces in long-run equilibrium is True or False: This indicates that there is excess capacity in the market for razors. O True False at the optimal quantity for each Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the externality implies that there is too much entry of new firms in the market.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
mj
Subject-Economics
Transcribed Image Text:100
PRICE (Dollars per razor)
90
80
70
60
50
40
30
20
10
0
MC
0
10
ATC
Demand
MR
20 30 40 50 60 70
QUANTITY (Thousands of razors)
80
90
100
+
Mon Comp Outcome
Min Unit Cost
Transcribed Image Text:Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that
the efficient scale.
firm. Further, the quantity the firm produces in long-run equilibrium is
True or False: This indicates that there is excess capacity in the market for razors.
O True
False
at the optimal quantity for each
Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the
externality implies that there is too much entry of new firms in the market.
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