Top Posters
Since Sunday
L
3
d
3
y
3
a
3
n
3
d
3
e
3
d
3
c
3
p
3
M
3
a
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
whipped whipped
wrote...
Go to Answer
Posts: 560
Rep: 0 0
7 years ago
The following figure illustrates the marginal cost (MC) curves of two firms operating in the same industry. The marginal cost of Firm B is higher than the marginal cost of Firm A.



a)   What is the optimal output of each firm if the market price is $15?
b)   The government decides to shut down Firm B as it has a higher marginal cost than Firm A. If it does so, and asks Firm A to produce the combined output of firms A and B, will production be efficient? Explain your answer.
c)   How does the invisible hand work in such an industry?
Textbook 
Microeconomics

Microeconomics


Edition: 1st
Authors:
Read 112 times
1 Reply
Replies
Answer verified by a subject expert
losteinlostein
wrote...
#1
Top Poster
Posts: 583
Rep: 31 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 320 words.
1
Only I can change my life. No one can do it for me.

Related Topics

whipped Author
wrote...

7 years ago
Just got PERFECT on my quiz
asd454512
wrote...

Yesterday
Thanks
jblazah
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  961 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 303
  
 401
  
 334
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 820
Previous poll results: Which is the best fuel for late night cramming?