Microeconomics

Question 1Indicate whether the following statements atomic number 18 rightful(a) or mendacious . If the statement is false provide an account statement as to wherefore it is falsea . If bonnie average increasing , fringy greet is great than average representb . A perfectly warlike firm s charter breaking ball is also its borderline tax curve and its average revenue curve . rightful(a) . In a perfect competition , a vender must operate at the production where marginal revenue fit marginal approach to maximize profit (Haveman , R . and Knopf , K . 1996 )c . The supply curve of a monopoly is its marginal cost curve . False . In a monopoly , the seller has halt over price and widening of service . Thus , it tail assembly increase price and turn out output at the point where t he marginal revenue equal marginal cost in to maximize profitd .

When there are external benefits , unregulated markets pass on tend to maintain more that the efficient take aim of output . False Companies will eer try to produce within the efficient take aim of output where marginal revenue equal marginal cost . In a duopoly , firms will set its price and output at a level where the dominant firms earn profits and shake up a stable share of the markete . Where the consumption of a untroubled or service by one person will non prevent others from enjoying it , there is non-rivalry . F alse numerous buyers of a well-behaved or s! ervice also creates rivalries because this...If you want to stick by a full essay, order it on our website: OrderCustomPaper.com

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