Blackboard 10 123 $67 910 11 12 Duaity Refer to Figure 13.4. Curve A represents

Question

Blackboard 10 123 $67 910 11 12 Duaity Refer to Figure 13.4. Curve A represents which type of cost curve? O a average variable cost O b. average total cost o c average fixed cost od. marginal cost QUESTION 21 In the transition from the short run to the long run, the number of firms in a competitive industry is c, a, increasing at a constant rate ob decreasing C fixed d able to adjust to market conditions QUE STION 22 Which of the following statements best reflects a price-taking flim? a. If the firm were to charge more than the going price, it would sell none of its goods b Price-taking firms maximize profits by charging a price above marginal cost c The fim has an incentive to charge less than the market price to eam higher revenue d. The fim can sell only a limited amount of out put at the market price before the market price will fal

Explanation / Answer

Ans

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C. Average fixed cost

The average fixed cost calls continually with the increase in the level of output.

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D. Able to adjust to the level of output.

Depending upon the level of profits or losses the number of firms are adjusted in the competitive industry.

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A. If the firm were to charge more than the ongoing price it would lose all its consumers.

This is due tot the presence of a large number of firms.

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