ifa purely competitive firm is producing at an output where marginal revenue exc
ID: 1106619 • Letter: I
Question
ifa purely competitive firm is producing at an output where marginal revenue exc marginal cost, the firm will increase its profit by () 14 a reducing production to the point where variable costs are minimized. b.reducing production to the point where unit costs are minimized. c. reducing its output and simultaneously increasing its price. d. increasing its output. 15. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is () a. equal to the price. b. less than the price. c. greater than the price. d. equal to the average cost. 16. Which of the following is a barrier to entry? () a. Patents b. Revenue maximization c. Profit maximization d. Elastic product demand 17. Which is the best example of price discrimination? ( ) a. An airline company charging lower fares per pound for air freight than for passengers. b. A telephone company charging lower rates to weekend users than weekday users. c. A supermarket charging lower prices in its inner city store than its out-of-town store. d. A private doctor charging higher fees to patients receiving special services than patients receiving regular services. 18. A high concentration ratio indicates that () a the industry is highly profitable. b. the industry is highly competitive. c. many firms produce most of the output in an industry. d. few firms produce most of the output in an industry 19. Money is not an economic resource because a money, as such, does not produce anything. b. idle money balances do not earn interest income. c. it is not scarce. d. money is not a free gift of nature. 20. Which type of goods is most adversely affected by recessions? a. Goods for which the income-elasticity coefficient is relatively low or negative. b. Goods for which the income-elasticity coefficient is relatively high and positive. c. Goods for which the cross-elasticity coefficient is positive. d. Goods for which the cross-elasticity coefficient is negative. 21. Economists use the term "demand" to refer to ) a a particular price-quantity combination on a stable demand curve. b. the total amount spent on a particular commodity over a stipulated time period.Explanation / Answer
14) The answer is D-) increase its output.
because, if a purely competitive firm firm produce an output where its marginal revenue exceeds marginal cost , then a firm should increase its output or increase its production to the where its marginal revenue equal to marginal cost because we know that when marginal revenue is equal to marginal cost, profits is maximized. therefore the firm should increase its output.
15 and all. ) please upload it again ( its against chegg policy)
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