« previous next »

Author Question: Assume that price exceeds average variable cost over the relevant range of demand. If a ... (Read 66 times)

jrubin

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
Assume that price exceeds average variable cost over the relevant range of demand.
 
  If a monopolistically competitive firm is producing at an output where marginal revenue is 111.11 and marginal cost is 118, then to maximize profits the firm should increase its output.

Question 2

If a perfectly competitive firm's price is above its average total cost, the firm
 
  A) is incurring a loss. B) should shut down. C) is earning a profit. D) is breaking even.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


Ahnyah

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Menstrual cycle summary based on a 28-day (average) menstrual cycle. Menstrual cycle summary based on a 28-day (average) menstrual cycle.
Average national IQs according to IQ and Global Inequality Average national IQs according to IQ and Global Inequality
How to find the domain and range of natural logarithmic functions (Part 1) How to find the domain and range of natural logarithmic functions (Part 1)
The growth in demand for energy use is met by burning fossil fuels The growth in demand for energy use is met by burning fossil fuels
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Cost Accounting 14 Cost Accounting 14
Video: Inflammation and Fever

For a complete list of videos, visit our video library