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# Refer to Figure 13-17. What is the productively efficient output for the firm represented in the ...

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Question 1.

Suppose Alexander is successful in establishing a profitable market for his vegan bakery in what is a monopolistically competitive industry. In the long run, Alexander will most likely find it ________ to remain profitable as he faces ________ competition in the vegan bakery market.

harder; less

harder; more

easier; less

easier; more

Question 2.

Figure 13-17

Refer to Figure 13-17. What is the productively efficient output for the firm represented in the diagram?

Qf units

Qg units

Qh units

Qj units

Textbook

## InMicro

Edition: 1st
Authors:
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wrote...
A week ago
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A week ago
 Brilliant
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A week ago
 Question 1.Figure 13-17Refer to Figure 13-17. What is the allocatively efficient output for the firm represented in the diagram? ▸ Qf units▸ Qg units▸ Qh units▸ Qj unitsQuestion 2.Figure 13-17Refer to Figure 13-17. What is the amount of excess capacity?▸ Qh - Qg units▸ Qj - Qf units▸ Qh - Qf units▸ Qj - Qh units
wrote...
A week ago
wrote...
A week ago
 Figure 13-17Refer to Figure 13-17. Suppose the firm is currently producing Qf units. What happens if it increases its output to Qg units?▸ It will be taking advantage of economies of scale and will be able to lower the price of its product.▸ Its average cost of production will fall and its profit will rise.▸ It will move from a zero profit situation to a profit situation.▸ It will move from a zero profit situation to a loss situation.
wrote...
A week ago
 It will move from a zero profit situation to a loss situation.
wrote...
A week ago
 Helps a lot... Now I'm ready for my quiz
wrote...
A week ago
 Figure 13-17Refer to Figure 13-17. In the long run, why will the firm produce Qf units and not Qg units, which has a lower its average cost of production? ▸ At Qg, marginal revenue is less than average revenue which will result in a loss for the firm.▸ The firm's goal is to charge a high price and make a small profit rather than a low price and no profit. ▸ At Qg, average cost exceeds marginal cost so the firm will actually make a loss.▸ Although its average cost of production is lower when the firm produces Qg units, to be able to sell its output the firm will have to charge a price below average cost, resulting in a loss.
wrote...
A week ago
 Although its average cost of production is lower when the firm produces Qg units, to be able to sell its output the firm will have to charge a price below average cost, resulting in a loss.
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