35. When a perfectly competitive firm increases output, total revenue: increases, because there is no quantity...
35. When a perfectly competitive firm increases output, total revenue:
-
increases, because there is no quantity effect.
-
increases, because there is no price effect.
-
decreases, because there is no quantity effect.
32. The monopolist is able to enjoy profits in the long run because:
-
All of these statements are true.
-
there is no threat of competition.
-
the firm's price is set above its marginal costs.
-
the firm can charge a price higher than its average total costs in the long run.
-
decreases, because there is no price effect.
Homework Answers
35.A competitive firm can produce any level of output at the set price.The price does not change when output increases,and TR=P*Q.
A rise in price would this increase TR.
Answer-Increase.
32.A monopolistic can charge a price higher than ATC even in the long run,due to barriers to entry.
Answer-The firm can charge a price higher than its average total costs in the long run.
Add Answer to:
35. When a perfectly competitive firm increases output, total
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