When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, it will be
A) producing the efficient scale of output and is at point A on the ATC curve.
B) producing more than the efficient scale of output and is at point C on the ATC curve.
C) producing at less than the efficient scale of output and is at a point such as F on the ATC curve.
D) producing the efficient scale of output and is at point B on the MC curve.
Ques. 2If marginal benefit is greater than marginal cost for the production of cars, to reach the allocative efficient quantity of cars, the production of cars must be increased.
Indicate whether the statement is true or false
Ques. 3During a recession when people's incomes drop, grocery chains experience much smaller declines in sales than do upscale department stores. Explain this phenomenon using the concept of elasticity.
What will be an ideal response?
Ques. 4In the personal computer (PC) market in the first half of 2008, Hewlett-Packard maintained its worldwide No. 1 ranking at a market share of 19.1 percent.
Dell's market share was 16 percent and Acer held onto third place with a 9.5 percent share, and Lenovo maintained fourth place, with a 7.9 percent share. What is the four-firm concentration ratio in the PC market?
A) 60.3
B) 52.5
C) 45
D) 36.5
Ques. 5The value of one more unit of a good or service is its marginal benefit.
Indicate whether the statement is true or false
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