Excess capacity typically occurs
a. in the short run in perfect competition
b. in the short run in monopolistic competition
c. in long-run equilibrium in perfect competition
d. in long-run equilibrium in monopolistic competition
e. usually in markets experiencing an increase in demand
D
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The cost savings associated with the cost-effective solution relative to a uniform standard equals
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. $300 b. $108 c. $10.8 d. $9.60
Because it is a machine, a personal computer should be treated as a fixed input in the typical firm's short-run production function
Indicate whether the statement is true or false
When we move upward and to the left along a linear, downward-sloping demand curve, price elasticity of demand
a. first becomes smaller, then larger. b. always becomes larger. c. always becomes smaller. d. first becomes larger, then smaller.
Given the same cost data, a pure monopolist producer will charge:
A. a higher price and produce a larger output than a purely competitive industry. B. a lower price and produce a smaller output than a purely competitive industry. C. a higher price and produce a smaller output than a purely competitive industry. D. the same price and produce the same output as a purely competitive industry.