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As additional consumers obtain the benefits of a pure public good, such as natio

ID: 1098697 • Letter: A

Question

As additional consumers obtain the benefits of a pure public good, such as national defense, the benefits to the existing consumers will _______. This is known as _________.

stay the same; nonrival consumption.

stay the same; non-exclusionary consumption.

increase; nonrival consumption.

increase; non-exclusionary consumption.

A firm has a total cost function of C(Q) = 75 + 25Q2. The firm experiences:

All of the statements associated with this question are correct.

Which of the following is true for perfect competition, monopolistic competition, and monopoly?

Zero long-run profits

Positive long-run profits

P = MC and positive long-run profits

stay the same; nonrival consumption.

stay the same; non-exclusionary consumption.

increase; nonrival consumption.

increase; non-exclusionary consumption.

A firm has a total cost function of C(Q) = 75 + 25Q2. The firm experiences:

economies of scale. diseconomies of scale. constant returns to scale.

All of the statements associated with this question are correct.

Which of the following is true for perfect competition, monopolistic competition, and monopoly?

MC = MR

Zero long-run profits

Positive long-run profits

P = MC and positive long-run profits

Explanation / Answer

As additional consumers obtain the benefits of a pure public good, such as national defense, the benefits to the existing consumers will _STAY THE SAME. This is known as _NON RIVAL CONSUMPTION.


A firm has a total cost function of C(Q) = 75 + 25Q2. The firm experiences: DISECONOMIES OF SCALE


Which of the following is true for perfect competition, monopolistic competition, and monopoly?

MC = MR

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