10. The following competing firms are currently profitable and have the followin

Question

10. The following competing firms are currently profitable and have the following data. If a Perfect Competition is ultimately reached, which of the firms will survive in the long run? Firm Output Current MC Minimum Minimunm Long run AVC Long run ATC 15 20 15 20 8 10 200 225 500 10 a. Firm A b. Firm A and C c. Firms A,B, C d. Firms A, B,D e. All firms will survive in the long run. 11. Regarding price elasticity, which of the following is false? a. In case of inelastic demand, an increase in price increases quantity sold. b. In the case of inelastic demand, lowering the price lowers the revenue. c. In the case of unitary demand, consumer expenditures is unchanged if the price increases. d. In the case of linear demand function, the lower half part of the demand curve is inelastic 12. . Given the following demand function, mplementary to good Y. b. Good X is inelastic, regular, normal, and substitute of good Z c. Good X is Giffen, inelastic, normal, and is substitute of good Z. d. Good X is elastic, regular, inferior, and complementary to both goods Y and Z e. Good X is elastic, inferior, and is a substitute of good Z. Assuming no interest risk, if the nominal interest is 10% and the real interest rate is 5%, the inflation rate is 13. a. 2.1712 b. 4.7619 d. 5.124

Explanation / Answer

Question 10) Answer:- Option e). All firms will survive in the long run.

Question11) answer is option (a) is false

explanation

In case of inelastic demand rise in price decreases quality sold but less than rise in price.

Question 13) answer is option (c)

inflation rate =nominal -real =10-5=5%

NOTE: as per chegg guidlines can do only 1 qustion but i did 3 for u,thanku plz rate

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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