(Solved) Refer to Figure 13-18. Which of the following statements is true?

malabranche13

wrote...

Go to Answer

Posts: 478

Rep:

4 years ago

Refer to Figure 13-18. Which of the following statements is true?

Figure 13-18

Refer to Figure 13-18. Which of the following statements is true?

▸

Da represents the long-run supply curve in a perfectly competitive, constant-cost industry while Db depicts the long-run demand curve facing a monopolistic competitor in a decreasing-cost industry.

▸

Da represents the long-run demand curve facing a perfect competitor while Db depicts the long-run demand curve facing a monopolistic competitor.

▸

Da represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while Db depicts the long-run demand curve in an increasing-cost industry.

▸

Da represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while Db depicts the demand curve in the short run.

Textbook

InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

Read 253 times

4 Replies

Report

Replies

Answer verified by a subject expert

johnsyke

wrote...

Posts: 406

Rep:

4 years ago

More solutions for this book are available here

Report

Related Topics

malabranche13 Author

wrote...

4 years ago

Helps a lot... Now I'm ready for my quiz

Report

yuknam

wrote...

4 years ago

Figure 13-18

Refer to Figure 13-18. The diagram demonstrates that

▸

it is not possible for a monopolistic competitor to produce the productively efficient output level, Qa, because of product differentiation.

▸

it is possible for a monopolistic competitor to produce the productively efficient output level, Qa, if it is willing to lower its price from Pb to Pa.

▸

in the long run, the monopolistic competitor produces the minimum-cost output level, Qa, but in the short run its output of Qb is not cost minimizing.

▸

in the short run, the monopolistic competitor produces an output Qb but in the long run after it adjusts its capacity, it will produce the allocatively efficient output, Qa.

Report

aishasu

wrote...

4 years ago

it is not possible for a monopolistic competitor to produce the productively efficient output level, Qa, because of product differentiation.

Report

New Topic

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.