ECON 2030 : Econ 2030 Test 2 Sol N
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Everything else held constant the firm will respond to the change in fixed costs by the amount it poduces in the short run: increasing, not changing, decreasing. Suppose at a given point in time chez rachael sells ratatouille in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose bess"s hat hut operates ina perfectly competitive market and is level of production, bess"s average total cost is and her price is . producing its profit maximizing level of output. With this pricing scheme the garage is: engaging in second-degree price discrimination, not engaging in price discrimination, engaging in third-degree price discrimination, engaging in first-degree price discrimination. Suppose marys melodica shoppe is non-price discriminating monopolist and is producing its profit maximizing level of output. Suppose further that when peg produced an eleventh box her average total cost increased. Suppose sally is considering opening her own vegan bakery/juice bar.
