This topic contains a solution. Click here to go to the answer

Author Question: Under which of the following situations would a seller prefer to incur the cost of improving the ... (Read 22 times)

JMatthes

  • Hero Member
  • *****
  • Posts: 578
Under which of the following situations would a seller prefer to incur the cost of improving the product quality?
 a. If the increase in buyer's valuation for the improved product is higher than the cost of improving it.
  b. If the increase in the seller's opportunity cost of improving the product is higher than the price of the product.
  c. If the product improvement lowers the producer surplus.
  d. If the product improvement allows the seller to a break even.

Question 2

Monopolistic and perfect competition are alike in that:
 a. a firm's long-run equilibrium output is located where long-run average total cost is increasing.
  b. a firm's long-run equilibrium output is located where long-run average total cost is minimized.
  c. firms earn a normal rate of return in the long run.
 d. firms are price takers.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sierramartinez

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

A

Answer to Question 2

c




JMatthes

  • Member
  • Posts: 578
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


amandanbreshears

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Excellent

 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

For a complete list of videos, visit our video library