Top Posters
Since Sunday
t
7
m
6
k
6
F
5
j
5
t
5
j
5
G
5
f
5
a
5
d
5
c
5
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
blakenordgaard blakenordgaard
wrote...
Go to Answer
Posts: 136
Rep: 0 0
A year ago

Consider three firms, A, B and C, all producing kilos of potatoes (per year) in a perfectly competitive market. The diagrams below show marginal cost curves for each of the three firms.

Short description: Three graphs labelled firm A, firm B, and firm C. Long description: The first graph represents firm A. The horizontal axis representing the quantity of potatoes ranges from 200 to 700. The vertical axis representing cost in dollars ranges from 0 to 8, in increments of 2. MC subscript A passes through the following points: (200, 2), (500, 4), and (700, 6). The second graph represents firm B. The horizontal axis representing the quantity of potatoes ranges from 500 to 900. The vertical axis representing cost in dollars ranges from 0 to 8, in increments of 2. MC subscript B passes through the following points: (500, 2), (800, 4), and (900, 6). The third graph represents firm C. The horizontal axis representing the quantity of potatoes ranges from 200 to 800. The vertical axis representing cost in dollars ranges from 0 to 8, in increments of 2. The MC subscript C passes through the following points: (200, 4), (500, 6), and (800, 8).

FIGURE 12-1

Refer to Figure 12-1. Suppose each of Firms A, B and C are producing 500 kilos of potatoes. Keeping total output unchanged, what level of output should each firm be producing such that the industry is productively efficient?



▸ Firm A: 500 kilos, Firm B: 500 kilos, Firm C: 500 kilos

▸ Firm A: 500 kilos, Firm B: 200 kilos, Firm C: 200 kilos

▸ Firm A: 200 kilos, Firm B: 500 kilos, Firm C: 800 kilos

▸ Firm A: 700 kilos, Firm B: 800 kilos, Firm C: 0 kilos

▸ Firm A: 500 kilos, Firm B: 800 kilos, Firm C: 200 kilos
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 43 times
1 Reply
Replies
Answer verified by a subject expert
durandaldurandal
wrote...
#1
Posts: 133
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

blakenordgaard Author
wrote...

A year ago
this is exactly what I needed
Marcie D
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Jodias
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  949 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 107
  
 4440
  
 143