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

Author Question: The above figure represents a restaurant operating in monopolistic competition. a. What is the ... (Read 138 times)

Alygatorr01285

  • Hero Member
  • *****
  • Posts: 564
on: Jun 29, 2018
The above figure represents a restaurant operating in monopolistic competition.
 
  a. What is the profit-maximizing level of output?
  b. What price will the firm charge?
  c. What is the firm's profit (or loss)?
  d. Is this a long-run equilibrium? Why or why not?
  e. Is this firm producing its efficient scale of output?

Question 2

In a regressive tax system, ________.
 
  A) low income households pay a higher percentage of their income as taxes
  B) high income households pay a higher percentage of their income as taxes
  C) all households pay the same amount of taxes irrespective of their income
  D) all households pay the same percentage of their income as taxes


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katara

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jun 29, 2018
Answer to Question 1

a. The quantity is 20 meals a day.
b. The price is 12 per meal.
c. The firm is making zero economic profit, that is, the firm is earning a normal profit.
d. This is a long-run equilibrium because the firm is making zero economic profits so there is no incentive for either entry or exit.
e. No, the firm is not producing its efficient scale of output. It is producing less than the efficient scale. The efficient scale, where the average total cost is at is minimum, is 50 meals a day. Hence the firm has excess capacity.

Answer to Question 2

A


Alygatorr01285

  • Member
  • Posts: 564
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ktidd

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

The anterior pituitary is sometimes called the master gland because it secretes many hormones that r The anterior pituitary is sometimes called the master gland because it secretes many hormones that r
(a) Male competition can be fierce. (b) This male baboon has bite wounds suffered in competition wit (a) Male competition can be fierce. (b) This male baboon has bite wounds suffered in competition wit
Paul Colin, Figure of a Woman. Paul Colin, Figure of a Woman.
A Receiver-Operating-Characteristic (ROC) Curve A Receiver-Operating-Characteristic (ROC) Curve
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
How much voltage does the resistor drop in Figure 10-2? How much voltage does the resistor drop in Figure 10-2?
Video: Enzyme-Catalyzed Reactions

For a complete list of videos, visit our video library