Author Question: Assume that a product upgrade strategy adopted by a microwave oven manufacturer increases his ... (Read 79 times)

Sportsfan2111 · **on:** Jun 30, 2018

Assume that a product upgrade strategy adopted by a microwave oven manufacturer increases his marginal cost by 1.50 . If the strategy also increases the demand for the product by 3.50 per unit, total economic value will increase.
Indicate whether the statement is true or false

Question 2

Excess capacity occurs in long-run equilibrium under monopolistic competition so that:
a. price is less than marginal cost.
b. price exceeds minimum average cost.
c. marginal revenue exceeds price.
d. all of the above occur.