Can anyone help me do 20-23 (20) the same facts as in Question (19), the firm wi
ID: 1124092 • Letter: C
Question
Can anyone help me do 20-23
(20) the same facts as in Question (19), the firm will, in the long raun, produce (a) 0 units. (b) 2 units. (c) 3 units. (d) 4 units. (e) 5 units. (21) Which of the following statements is true? (a) Total Variable Cost (TVC) at Q 6 is $$20 (b) Marginal Cost at Q-4 is $S2 c) Average Total Cost (ATC) at Q-O is 0 (d) Average Variable Cost at Q-4 is $$9 (e) None of the above. (22) Which of the following statements is true? (a) When a firm earns a "normal profit" it is earning zero economic profit (b) When a firm earns a normal profit, this means its revenues are just enough to cover all its costs, including all relevant opportunity costs (c) If the "typical" firm in a competitive industry carns normal profit new firms will not enter and we say that the industry is in "long-run equilibrium." (d) All of the above (e) None of the above If an industry's technology is such that "minimum efficient scale" (MES) occurs at an output level which is relatively large in relation to industry demand, it is likely to be: (23) (a) A purely competitive industry (b) A monopolistically competitive industry (e) A hybrid industry with some large and many small firms (d) An oligopolistic industry. (e) None of the above. 4) Ask your average economist why monopoly is inefficient from society's point of view and he or she will reply: it is because in a monopoly (a) Marginal revenue (MR) exceeds marginal cost (MC) (b) Price (P) equals MC. (c) MR is less than MC (d) Pexceeds MC (e) MC exceeds average total cost (ATC).Explanation / Answer
WHERE IS QUESTION 19? WITHOUT THAT FIRST TWO QUESTIONS CANNOT BE ANSWERED.
Answer:- which of the following statements is true
Correct Answer:- when a firm earns a normal profit, it is earning zero economic profit
Reason:- In the long run, perfectly competitive firms earn zero economic profit (earn a normal profit) because any economic profit would attract newcomers to the industry and it happens when the difference between a firm's total revenue and total cost is equal to zero.
Answer:- if an industry's technology is such that minimum efficient scale occurs at an output level which is relatively large to industry demand is likely to be
Correct Answer;- Monopolistic competitive industry
Reason:- When minimum efficient scale is quite large it will indicate that there are very few firms such as gas, water, electricity.
Answer:- Because in Monopoly
Correct Answer:- P exceeds MC
Reason:- Monopoly is inefficinect as Prices are more than MC and ATC
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