Figure 16-12100 Price9080MCATC7058 6050403630 +2010 +MR4812 16 20,24 28 32 Buaxtityc)Does the firm minimize cost? Why or why not? How muchexcess capacity does this firm have?

Marginal revenue curve lies below the demand curve because the seller has to decrease the price in…

Answered: Figure 16-12 Price 100 90 80 MC 'ATC 70…

Figure 16-12 Price 100 90 80 MC 'ATC 70 Fog 85 50 + 40 + 36 30 + 20 10 + MR 4 12 16 20,24 28 32 Buantity Does the firm minimize cost? Why or why not? How much excess capacity does this firm have? c)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 21RQ: Are fixed costs also sunk costs? Explain.

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Question

Figure 16-12
100 Price
90
80
MC
ATC
70
58 60
50
40
36
30 +
20
10 +
MR
4
8
12 16 20,24 28 32 Buaxtity
c)
Does the firm minimize cost? Why or why not? How much
excess capacity does this firm have?

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