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Part a of question attached   b) To achieve productive efficiency, this firm would need to produce ______ units?   c) To achieve allocative efficiency, the firm would produce ______ and charge a price of ______   d) Is a monopolistically competitive outcome productively efficient? Is it allocatively efficient?

Part a of question attached   b) To achieve productive efficiency, this firm would need to produce ______ units?   c) To achieve allocative efficiency, the firm would produce ______ and charge a price of ______   d) Is a monopolistically competitive outcome productively efficient? Is it allocatively efficient?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Part a of question attached

 

b) To achieve productive efficiency, this firm would need to produce ______ units?

 

c) To achieve allocative efficiency, the firm would produce ______ and charge a price of ______

 

d) Is a monopolistically competitive outcome productively efficient? Is it allocatively efficient? 

$70 $65 $60 $55 $50 $45 MC $40 ATC. $40 $32.50 $35 $30 $25 $25 $20 $15 $10 $14.30 Demand MR $5 0.5.0 1.5.0 2.5.0 3.50 4.5.0 5.5.0 6.5.0 Quantity The firm's profit-maximizing output level is 2.5| units. The firm will charge a price of $ per unit. At this output level, the firm is earning a profit-per-unit of $ Its total profit at this output level is $ Price and costs
Transcribed Image Text:$70 $65 $60 $55 $50 $45 MC $40 ATC. $40 $32.50 $35 $30 $25 $25 $20 $15 $10 $14.30 Demand MR $5 0.5.0 1.5.0 2.5.0 3.50 4.5.0 5.5.0 6.5.0 Quantity The firm's profit-maximizing output level is 2.5| units. The firm will charge a price of $ per unit. At this output level, the firm is earning a profit-per-unit of $ Its total profit at this output level is $ Price and costs
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