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Perfectly competitive firms, in the short run, should continue to opera they earn enough revenue to cover their fixed cost. In the long run, firms in perfectly competitive markets who do not exit th be able to sustain a positive economic profit. Monopolistic competition leads to an efficient outcome in the long run. Monopolists choose a profit-maximizing output that maximizes the tota market. . It is profit-maximizing for firms to produce at a point where margin greater than price.

Perfectly competitive firms, in the short run, should continue to opera they earn enough revenue to cover their fixed cost. In the long run, firms in perfectly competitive markets who do not exit th be able to sustain a positive economic profit. Monopolistic competition leads to an efficient outcome in the long run. Monopolists choose a profit-maximizing output that maximizes the tota market. . It is profit-maximizing for firms to produce at a point where margin greater than price.

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 21E: Making furniture Two woodworkers, Chase and Devin, get 100 for making a table and 80 for making a...
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Tell whether each of the following is True or False. Explain carefully why it is either True or False. A dit Perfectly competitive firms, in the short run, should continue to operate as long as they earn enough revenue to cover their fixed cost. In the long run, firms in perfectly competitive markets who do not exit the market will be able to sustain a positive economic profit. Monopolistic competition leads to an efficient outcome in the long run. Monopolists choose a profit-maximizing output that maximizes the total surplus in a market. It is profit-maximizing for firms to produce at a point where marginal revenue is greater than price.
Transcribed Image Text:Tell whether each of the following is True or False. Explain carefully why it is either True or False. A dit Perfectly competitive firms, in the short run, should continue to operate as long as they earn enough revenue to cover their fixed cost. In the long run, firms in perfectly competitive markets who do not exit the market will be able to sustain a positive economic profit. Monopolistic competition leads to an efficient outcome in the long run. Monopolists choose a profit-maximizing output that maximizes the total surplus in a market. It is profit-maximizing for firms to produce at a point where marginal revenue is greater than price.
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