« previous next »

Author Question: Assume that price exceeds average variable cost over the relevant range of demand. If a ... (Read 73 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?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

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

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

The Pantanal, Brazil, seen here in flood condition, is a critical jaguar range area. The Pantanal, Brazil, seen here in flood condition, is a critical jaguar range area.
Range of Motion of the Spine, Flexion and Hyperextension Range of Motion of the Spine, Flexion and Hyperextension
Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
Hypothetical Range of Perceived Brightness (in jnds) as a Function of Intensity Hypothetical Range of Perceived Brightness (in jnds) as a Function of Intensity
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
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Cardiac Cycle (Part 3 of 4)

For a complete list of videos, visit our video library