ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 13.1, Problem 4QQ
To determine
Long run profit.
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Students have asked these similar questions
Which of the following statements is correct?
a. In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity.
b. A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale.
c. For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve.
d. All of the above are correct.
The graph below summarizes the demand and costs for a firm that operates in a monopolistically competitive market.Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.a. What is the firm’s optimal output? unitsb. What is the firm’s optimal price?$ c. What are the firm’s maximum profits?$ d. What adjustments should the manager be anticipating?multiple choice
Demand will decrease over time as new firms enter the market.
Demand will increase over time as firms exit the market.
Demand will remain unchanged over time.
What is the first item to identify when determining the short-run equilibrium for a monopolistically competitive firm?
a. the total profits
b. the total revenue
C. the total costs
d. the profit-maximizing level of output
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