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Author Question: The Specialty Cake Store, a monopolistically competitive firm, is producing 200 decorated cakes per ... (Read 184 times)

APUS57

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on: Apr 19, 2019

Question 1

A monopolistically competitive firm that is incurring a loss will shut down if


◦ marginal revenue is less than marginal cost.
◦ revenues are less than variable costs.
◦ price is less than average total cost.
◦ price is less than marginal cost.

Question 2

The Specialty Cake Store, a monopolistically competitive firm, is producing 200 decorated cakes per day and selling each cake for $12. At that production level 
ATC is $20, 
AVC is $15, 
AFC is $5, and both 
MR and 
MC are $8. This firm should


◦ continue to produce 200 cakes, as price is greater than 
AFC.
◦ increase output to the point where price equals marginal cost.
◦ decrease output to the point where marginal cost equals average cost.
◦ produce zero cakes and just pay fixed costs.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by APUS57 on Apr 19, 2019

iman

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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APUS57

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

raili21

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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