The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry.
FIGURE 11-5
Refer to Figure 11-5. How is the excess-capacity theorem demonstrated in this diagram?
◦ In long-run equilibrium, the firm is earning positive profits, but has unexploited economies of scale.
◦ In long-run equilibrium, this firm has excess capacity because they are selling output at a price below their LRAC.
◦ The long-run equilibrium occurs where the firm is producing output at q
0, which is less than that corresponding to the lowest point on its LRAC curve.
◦ The long-run equilibrium occurs where the firm is producing output at q
1, which is the same as for a perfectly competitive industry.
◦ The short-run equilibrium occurs where the firm is producing output at q
0, which is less than that corresponding to the lowest point on its LRAC curve.
Mutation and selection diagram
Plant Diagram
Bacteria Diagram
Selected Biologic Response Modifiers and Miscellaneous Antineoplastics
A spark plug thread chaser is a low-cost tool that hopefully will not be used often, but is ...
Two ROC Curves