« previous next »

Author Question: At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its ... (Read 76 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
on: Jun 30, 2018
At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its marginal revenue and price exceeds average variable cost. To maximize profit, the firm should
 a. lower the price
  b. raise the price
  c. increase output
  d. reduce output
  e. maintain its current rate of output

Question 2

Which of the following is not true of a pure monopoly?
 a. Demand is negatively sloped
  b. Marginal revenue is less than price therefore the firm should consider raising its price until marginal revenue equals demand
  c. Marginal revenue is less than average revenue therefore the firm should consider adjusting its quantity until marginal revenue equals average revenue
  d. It is a price taker
  e. Its position is protected by significant barriers to entry


mbcrismon

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

When the exhaust is lean, the output of a zirconia oxygen sensor is below 450 mV. When the exhaust is lean, the output of a zirconia oxygen sensor is below 450 mV.
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ... Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ...
The Amounts of the Different Minerals in Your Body The major minerals are present in larger amounts The Amounts of the Different Minerals in Your Body The major minerals are present in larger amounts
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Some of the Alleles present at white locus Some of the Alleles present at white locus
Video: Spinal Cord Injury Animation

For a complete list of videos, visit our video library