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

Author Question: Which of the following correctly states the main prediction of the excess-capacity theorem? (Read 96 times)

olsonmanny@gmail.com

  • Full Member
  • ***
  • Posts: 141
on: Oct 12, 2022
Which of the following correctly states the main prediction of the excess-capacity theorem?
◦ When price-taking firms maximize their profits by setting price equal to marginal cost, each firm operates with some excess capacity.
◦ Monopolistic firms will achieve positive economic profits by restricting output below the economically efficient level at which average total costs are minimized.
◦ Profit-maximizing firms will always choose to operate with some degree of excess capacity, in order to be flexible in the face of shifts in demand.
◦ Long-run equilibrium in a monopolistically competitive industry occurs with all firms producing at a lower output level than that which minimizes average total costs.
◦ All firms in a perfectly competitive industry will produce at a lower output level than that which minimizes average total costs.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by olsonmanny@gmail.com on Oct 12, 2022

dadgoere765

  • Full Member
  • ***
  • Posts: 186
Reply #1 on: Oct 12, 2022
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.
Answer Preview
Only 39% of students answer this correctly


olsonmanny@gmail.com

  • Member
  • Posts: 141
Reply 2 on: Oct 12, 2022
Excellent

alvinum

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
The United States in the Caribbean and Central America The United States in the Caribbean and Central America
The cultural script in the United States is for males to be the initiators and females the ... The cultural script in the United States is for males to be the initiators and females the ...
Primary causes of chronic liver disease in the United States. Primary causes of chronic liver disease in the United States.
How to use the Pythagorean Theorem How to use the Pythagorean Theorem
The three states of matter: solid, liquid, and gas. The three states of matter: solid, liquid, and gas.
Video: Factors that increase metabolic rate and heat production

For a complete list of videos, visit our video library