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14 Apr 2018
Use the figure above to answer the following questions. It pictures three cost curves of a perfectly competitive producer of apples. It also pictures a variety of possible market prices, ranging from $1.10 per bushel to $4.90 per bushel. We assume that the firm wants to maximize profit. Let Point f= $4.90/bushel; point g= $4/bushel: point m= $2.40/bushel Figure 21.1 Price or Cost (dollars/bushel) MC AT 4.90 g 13 18 24 37 46 50 54 Quantity (thousands of bushels/year) 12) A perfectly competitive firm achieves productive efficiency because a. it produces the quantity of output at which price equals marginal cost. b. it produces its output at the lowest possible unit cost in the long run. c. it produces the quantity of output at which the exchange value of resources to demanders equals the opportunity cost of the resources. d. its firms never waste resources on advertising individually. e. its firms never waste resources on advertising as a group
Use the figure above to answer the following questions. It pictures three cost curves of a perfectly competitive producer of apples. It also pictures a variety of possible market prices, ranging from $1.10 per bushel to $4.90 per bushel. We assume that the firm wants to maximize profit. Let Point f= $4.90/bushel; point g= $4/bushel: point m= $2.40/bushel Figure 21.1 Price or Cost (dollars/bushel) MC AT 4.90 g 13 18 24 37 46 50 54 Quantity (thousands of bushels/year) 12) A perfectly competitive firm achieves productive efficiency because a. it produces the quantity of output at which price equals marginal cost. b. it produces its output at the lowest possible unit cost in the long run. c. it produces the quantity of output at which the exchange value of resources to demanders equals the opportunity cost of the resources. d. its firms never waste resources on advertising individually. e. its firms never waste resources on advertising as a group
Hubert KochLv2
16 Apr 2018
