O False Question 29 Not yet answered Points out of 1 Remove flag (This question
ID: 2441165 • Letter: O
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O False Question 29 Not yet answered Points out of 1 Remove flag (This question refers to the MRU video Maximizing Profit and the Average Cost Curve:)A marginal cost curve is generally Select one: O a. upward-sloping, because costs rise at an increasing rate. O b.vertical at the market quantity O c.horizontal at the market price. d. downward-sloping, because costs fall at a decreasing rate Question 30 Not yet answered Points out of 1 P Flag question The monopolistic model helps explain both the negative and positive features of advertising Select one: O True O False Previous page Next page Practice for DAM 82-Units 9through 15 Jump to.. MAKEUP EXAM © 2016 Henry Ford Colege l 5101 Evergreen Rd. Dearborn M1481 28?400-585-HFCC https//www.hfcc.edu 8 2 0
Explanation / Answer
Q29)
Marginal cost is the difference of total cost in two consecutive units. An MC curve is slopped upward from left to right, because increasing production beyond a particular quantity level increases cost at increasing rate. It means MC would be higher at each subsequent production increase.
Answer: a
Q30)
Monopolistic competition: This is the combination of perfect competition and monopoly, where there is large number of buyers but dealing with differentiated products. Since the products are similar but not identical, each firm enjoys some monopoly power.
Positive: Advertisement brings positivity, since it establishes product differentiation for increasing consumer demand.
Negative: Advertisement gives the firm a monopoly power, which may turn into exploiting consumers like price rise.
Answer: true
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