21. Long-Run ATC 0 Output Refer to the diagram. Diseconomies of scale a) occur o

Question

21. Long-Run ATC 0 Output Refer to the diagram. Diseconomies of scale a) occur over the Q10s range of output. b) begin at output Q1- e) begin at output @s d) are in evidence at all output levels. 22. In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. For a purely competitive firm, marginal revenue graphs as a a) straight line, parallel to the horizontal axis. b) straight, upsloping line. c) straight, downsloping line. d) straight line, parallel to the vertical axis. In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. 23. For a purely competitive firm, a) the demand and marginal revenue curves will coincide. b) marginal revenue will graph as an upsloping crv c) the demand curve will lie above the marginal revenue curve. d) the marginal revenue curve will lie above the demand curve.

Explanation / Answer

21) C. Diseconomies of scale means when output increases. AC increases. Thua it starts with Q3

22)A. In perfect competition P=MR=AR which implies marginal revenue is a straight line which is parallel to Y axis or horizontal line.

23A. For competitive firm MR=Demand curve

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.