D)Refer your answer above. a) Will the fims' demand curve in the graph above shift to the right or to the left? b) Will the firm's demand curve in the graph above become more or less elastic? Briefly explain why? c) If the firm in the graph above chargers in the long-run equilibrium $10 per unit, what will be the firm's ATC equal to? What will be the fim's size of a profit? d) What are the ways, the firm in the graph above can differentiate its product from that of its competitors? What is the key implication of product differentiation and how consumers benfit from it? E) Refer to the graph above. The allocatively and productively efficient output level will be units and socially optimal price will be A) 400 units; $11.50 B) 900 units; $9 C) 600 units; $11.50 D) 600 units; $10
D)Refer your answer above. a) Will the fims' demand curve in the graph above shift to the right or to the left? b) Will the firm's demand curve in the graph above become more or less elastic? Briefly explain why? c) If the firm in the graph above chargers in the long-run equilibrium $10 per unit, what will be the firm's ATC equal to? What will be the fim's size of a profit? d) What are the ways, the firm in the graph above can differentiate its product from that of its competitors? What is the key implication of product differentiation and how consumers benfit from it? E) Refer to the graph above. The allocatively and productively efficient output level will be units and socially optimal price will be A) 400 units; $11.50 B) 900 units; $9 C) 600 units; $11.50 D) 600 units; $10
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 1.3P
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part D E
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