Microeconomics

Question 1Indicate whether the following statements atomic number 18 true or mendacious . If the statement is false provide an explanation as to wherefore it is falsea . If bonnie average increasing , marginal greet is great than average costb . A perfectly competitive firm s charter breaking ball is also its marginal revenue curve and its average revenue curve . True . In a perfect competition , a seller must operate at the production where marginal revenue fit marginal cost to maximize profit (Haveman , R . and Knopf , K . 1996 )c . The supply curve of a monopoly is its marginal cost curve . False . In a monopoly , the seller has control over price and widening of service . Thus , it can increase price and turn out output at the point where the marginal revenue equal marginal cost in to maximize profitd .

When there are external benefits , unregulated markets will tend to produce more that the efficient level of output . False Companies will eer try to produce within the efficient level of output where marginal revenue equal marginal cost . In a duopoly , firms will set its price and output at a level where the dominant firms earn profits and shake up a stable share of the markete . Where the consumption of a untroubled or service by one person will not prevent others from enjoying it , there is non-rivalry . False numerous buyers of a good or service also creates rivalries because this...If you want to stick by a full essay, order it on our website: Orderessay

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