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

Author Question: Which of the following correctly states the main prediction of the excess-capacity theorem? (Read 46 times)

olsonmanny@gmail.com

  • Full Member
  • ***
  • Posts: 141
on: Oct 12, 2022
Which of the following correctly states the main prediction of the excess-capacity theorem?
◦ When price-taking firms maximize their profits by setting price equal to marginal cost, each firm operates with some excess capacity.
◦ Monopolistic firms will achieve positive economic profits by restricting output below the economically efficient level at which average total costs are minimized.
◦ Profit-maximizing firms will always choose to operate with some degree of excess capacity, in order to be flexible in the face of shifts in demand.
◦ Long-run equilibrium in a monopolistically competitive industry occurs with all firms producing at a lower output level than that which minimizes average total costs.
◦ All firms in a perfectly competitive industry will produce at a lower output level than that which minimizes average total costs.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by olsonmanny@gmail.com on Oct 12, 2022

dadgoere765

  • Full Member
  • ***
  • Posts: 186
Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


olsonmanny@gmail.com

  • Member
  • Posts: 141
Reply 2 on: Oct 12, 2022
Great answer, keep it coming :)

daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Among non-Muslims in the United States, wearing a head scarf, or a khimar, is a personal fashion ... Among non-Muslims in the United States, wearing a head scarf, or a khimar, is a personal fashion ...
Relationship between Income and Happiness in the United States Relationship between Income and Happiness in the United States
The Lorenz Curve for the United States, 2009 The Lorenz Curve for the United States, 2009
Separation of main-band (MB) and satellite (S) DNA Separation of main-band (MB) and satellite (S) DNA
Main body cavities that hold human organs Main body cavities that hold human organs
Video: Carbohydrate Metabolism: Introduction to renal processes and filtrate formation and composition

For a complete list of videos, visit our video library