Kindly answer all 3 little mcq questions Question: A firm operating in a perfectly competitive environment faces the following costs and revenues: ATC = $8; AVC = $4; and MR = MC = $6. This firm should:Shut downDecrease production and raise itsIncreaseContinue to operate Ques: In the long run the demand curve that a monopolistic competitor faces for its product will likely:Intersect the ATC at its minimumIntersect the ATC curve somewhere past the minimumBecome tangent to the ATC curve somewhere left of its minimumNone of the Ques Monopolistically competitive firms are most likely to have profits:That are higher than competitive firms’ profit in the longHigher in the long run than in the shortZero in the long runEqual to the profit of a

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Answered: Kindly answer all 3 little mcq…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Kindly answer all 3 little mcq questions

Question: A firm operating in a perfectly competitive environment faces the following costs and revenues: ATC = $8; AVC = $4; and MR = MC = $6. This firm should:

Shut down
Decrease production and raise its
Increase
Continue to operate

Ques: In the long run the demand curve that a monopolistic competitor faces for its product will likely:

1. Intersect the ATC at its minimum
2. Intersect the ATC curve somewhere past the minimum
3. Become tangent to the ATC curve somewhere left of its minimum
4. None of the

Ques Monopolistically competitive firms are most likely to have profits:

1. That are higher than competitive firms’ profit in the long
2. Higher in the long run than in the short
3. Zero in the long run
4. Equal to the profit of a

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