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

Author Question: The less elastic is the demand for a firm's product, the greater is that firm's market power. ... (Read 65 times)

jho37

  • Hero Member
  • *****
  • Posts: 531
on: Jul 1, 2018
The less elastic is the demand for a firm's product, the greater is that firm's market power.
 
  Indicate whether the statement is true or false

Question 2

Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tdewitt

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jul 1, 2018
Answer to Question 1

True . The less elastic the demand for the firm's product, the greater is the firm's ability to set price over marginal cost.

Answer to Question 2

True . An increase in fixed costs will shift AC upward but leave AVC unchanged. The gap between AVC and AC represents prices at which the firm will operate at a loss.


jho37

  • Hero Member
  • *****
  • Posts: 531
Reply #2 on: Jul 1, 2018
Thank you


tdewitt

  • Sr. Member
  • ****
  • Posts: 318
Reply #3 on: Jul 1, 2018
No problemo


« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

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.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

In most ecosystems, sunlight provides the ultimate source of energy to power all biological activity In most ecosystems, sunlight provides the ultimate source of energy to power all biological activity
John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
Tag identify that the power has been removed and service work is being done. Tag identify that the power has been removed and service work is being done.
The schematic of a variable valve timing control circuit, showing that battery power (+) is being ... The schematic of a variable valve timing control circuit, showing that battery power (+) is being ...
Product & Process Influences - Sterile Products Product & Process Influences - Sterile Products
Fire power Mario Fire power Mario
Video: Fetal Development of the Cardiovascular System

For a complete list of videos, visit our video library