ECN 104 Study Guide - Quiz Guide: Marginal Cost, Fixed Cost, Allocative Efficiency
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Use the following to answer questions 1-2: refer to the diagram above. If this industry is perfectly competitive, the profit- maximizing price and quantity will be: p3 and q3, p1 and q1, p2 and q2. D) indeterminate on the basis of the information given: refer to the diagram above. If this diagram illustrates a monopolistic firm, the profit- maximizing price and quantity will be: p3 and q3, p1 and q1, p2 and q2. It shows cost data for a firm that is selling in a perfectly competitive market. Page 2: refer to the graph below. Use the following to answer question 7: the diagram above represents an industry. Assuming that the market structure for this industry is perfect competition, the producer surplus is shown by the area: oge, abe, ace, ghae. Page 3: if the total variable cost of 9 units of output is and the total variable cost of 10 units of output is , then:
