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 85 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
Great answer, keep it coming :)

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Myopia (nearsightedness). In the uncorrected top figure, the image comes into focus in front of the Myopia (nearsightedness). In the uncorrected top figure, the image comes into focus in front of the
The meninges. This figure illustrates the location and structure of each layer of the meninges and t The meninges. This figure illustrates the location and structure of each layer of the meninges and t
The paleoanthropologist must understand these deformations in order to figure out which strata a fos The paleoanthropologist must understand these deformations in order to figure out which strata a fos
Medicinal leeches on a patient’s neck. Today leeches are sometimes used in microsurgery to prevent b Medicinal leeches on a patient’s neck. Today leeches are sometimes used in microsurgery to prevent b
Caravaneer on a camel, China. Tang dynasty, (618–907). Polychrome terra-cotta figure. Caravaneer on a camel, China. Tang dynasty, (618–907). Polychrome terra-cotta figure.
Psychologists measure basic memory capacity Psychologists measure basic memory capacity
Video: Mendel's Principles of Inheritance (Father of Genetics)

For a complete list of videos, visit our video library