QUESTION 10 In an increasing cost industry, the long-run market supply curve is because the long run is increasing. downward sloping; average variable cost (AC) upward sloping: fixed cost (FC) downward sloping; marginal cost (MC) O upward sloping; average cost (AC) QUESTION 11 In the long run, each perfectly competitive firm has long run AC = 4+5Q+20/Q and MC=4+10Q. What is the long run equilibrium price P*? %3D $20 $24 $4

QUESTION 10 In an increasing cost industry, the long-run market supply curve is because the long run is increasing. downward sloping; average variable cost (AC) upward sloping: fixed cost (FC) downward sloping; marginal cost (MC) O upward sloping; average cost (AC) QUESTION 11 In the long run, each perfectly competitive firm has long run AC = 4+5Q+20/Q and MC=4+10Q. What is the long run equilibrium price P*? %3D $20 $24 $4

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 6E

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Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
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