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

Author Question: The firm in the figure above is in monopolistic competition. The firm has A) no excess capacity. ... (Read 99 times)

rmenurse

  • Hero Member
  • *****
  • Posts: 513
on: Jun 29, 2018
The firm in the figure above is in monopolistic competition. The firm has
 
  A) no excess capacity.
  B) excess capacity of 10 units.
  C) excess capacity of 20 units.
  D) excess capacity of 30 units.

Question 2

A price floor that is less than the equilibrium price leads to a shortage of the good. Is this assertion true or false? Explain your answer.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pallen55

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The assertion is false. A price floor is the minimum price that can legally be charged. If the price floor is less than the equilibrium price, it has no effect because the equilibrium price is already in compliance with the law. Hence a price floor set below the equilibrium price has no effect. However, a price floor set above the equilibrium price will have an effect and will create a surplus of the good.


rmenurse

  • Member
  • Posts: 513
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

EAN94

  • Member
  • Posts: 307
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Lewis symbols,(Figure 1) Lewis symbols,(Figure 1)
Teaching methods based on patients developmental capacity Teaching methods based on patients developmental capacity
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
Mobilize each metatarsal–phalangeal joint with figure-8s. Hold the tarsal just below the ... Mobilize each metatarsal–phalangeal joint with figure-8s. Hold the tarsal just below the ...
The oceans have absorbed 90% of excess energy The oceans have absorbed 90% of excess energy
What is the total resistance of the circuit in Figure 1? 150 What is the total resistance of the circuit in Figure 1? 150
Video: Supine Position

For a complete list of videos, visit our video library