Question 1
Pie-Oh-My, a monopolistically competitive firm, is baking 80 gourmet pies per day and selling each pie for $25. At that production level
ATC is $40,
AVC is $30,
AFC is $10, and both
MR and
MC are $16. This firm should
◦ continue to produce 80 pies, 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 pies and pay fixed costs.
Question 2
Pie-Oh-My, a monopolistically competitive firm, is producing 80 gourmet pies per day and selling each pie for $32. At that production level
ATC is $40,
AVC is $30,
AFC is $10, and both
MR and
MC are $16. In the short run, this firm should
◦ continue to produce 80 pies, as price is greater than
AVC.
◦ increase output to the point where price equals marginal cost.
◦ decrease output to the point where price equals average total cost.
◦ shutdown and produce zero pies and pay fixed costs.
competitive inhibition
Competitive enzyme immunoassay. (a) Shows the uninhibited reaction and (b) shows the inhibited ...
Competitive drug enzyme immunoassay.
Competitive inhibitor
Lineweaver–Burk plots of the reactions with and without a competitive inhibitor
Firm handshake