This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A perfectly competitive firm maximizes its profit by producing the level of output so that its ... (Read 144 times)

moongchi

  • Hero Member
  • *****
  • Posts: 516
on: Jun 29, 2018
A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.
 
  Indicate whether the statement is true or false

Question 2

Which of the following statements regarding an average-cost pricing rule for a natural monopoly is WRONG?
 
  A) It sets price equal to average total cost.
  B) It is efficient.
  C) The firm makes zero economic profit.
  D) More output is produced than if the firm maximized profit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

soda0602

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

B


moongchi

  • Member
  • Posts: 516
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

Mochi

  • Member
  • Posts: 300
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Nuclear division at the DNA level Nuclear division at the DNA level
Urinometer. In this procedure, a urine sample and urinometer are placed within a tube, and the liqui Urinometer. In this procedure, a urine sample and urinometer are placed within a tube, and the liqui
Level II HCPCs Codes Level II HCPCs Codes
A typical output driver. In this case, the PCM applies voltage to the fuel pump relay coil to ... A typical output driver. In this case, the PCM applies voltage to the fuel pump relay coil to ...
Effects of competitive inhibition on enzyme kinetics Effects of competitive inhibition on enzyme kinetics
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Enzyme structure - Properties of enzymes

For a complete list of videos, visit our video library