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16 Jul 2018
Price in a perfectly competitive industry:
is always equal to marginal revenue for the firm.
is indeterminate in the short run.
must be greater than average total cost or the firm will shut down in the short run.
is determined by each firm, depending on its costs of production.
Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:
rise.
It is not possible to make a determination from the information given.
remain unchanged.
fall.
Price in a perfectly competitive industry:
is always equal to marginal revenue for the firm. |
is indeterminate in the short run. |
must be greater than average total cost or the firm will shut down in the short run. |
is determined by each firm, depending on its costs of production. |
Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:
rise. |
It is not possible to make a determination from the information given. |
remain unchanged. |
fall. |
manhokwe tawandaLv10
2 Mar 2021