Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 29, 2022

What can be inferred from a monopolistic competitive firm that operates at an output where the average total cost curve is higher than the average

What can be inferred from a monopolistic competitive firm that operates at an output where the average total cost curve is higher than the average revenue curve?

The marginal cost of the firm is at a minimum.

The firm is at long run equilibrium.

The firm is making subnormal profit.

The firm should shut-down.

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

competitive firm that operates at an output where the average total cost curve is higher than the av... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Economics questions

Question

★★★★★

At mixing department, all materials are added at the beginning of the process. Lahore and overhead (conversion resources) are added evenly throughout the process. The following information pertains...

Answered: 1 week ago

Question

★★★★★

Materials are added at the beginning of the production process at Santiago Company, which uses a FIFO process costing system. The following information on the physical flow of units is available for...

Answered: 1 week ago

Question

★★★★★

Assuming that all materials are added at the beginning of the process and the labor and factory overhead are applied evenly during the process, compute the figures to be inserted in the blank spaces...

Answered: 1 week ago

Question

★★★★★

Briar Company manufactures and sells dresses at a variable cost of $32 each and a fixed cost of x. It can sell 6,600 dresses at a selling price of $60 to earn an operating income of $14,800 (Option...

Answered: 1 week ago

Question

★★★★★

The cylindrical tank shown in Figure 7.4.3 has a circular bottom area A. The mass inflow rate from the flow source is qmi(t), a given function of time. The flow through the outlet is turbulent, and...

Answered: 1 week ago

Question

★★★★★

What happens to the capacitive reactance XC and the inductive reactance XL if the frequency of the ac voltage is doubled? (a) XC increases by a factor of 2, and XL decreases by a factor of 2. (b) XC...

Answered: 1 week ago

Question

★★★★★

How would you help students develop an authentic sense of efficacy for guiding their own learning?

Answered: 1 week ago

Question

★★★★★

Smith Accounting Services is considering a special order that it received from one of its corporate clients. The special order calls for Smith to prepare the individual tax returns of the...

Answered: 1 week ago

Question

★★★★★

Please answer carefully Patricia Zell a dollmaker from Olney, Maryland, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial...

Answered: 1 week ago

Question

★★★★★

Cost-Volume-Profit (CVP) Relationships a. Selling Price : You sell a case of cookies for $16 b. Breakeven point: Calculate the breakeven point. Be sure to include the fixed component of mixed cost in...

Answered: 1 week ago

Question

★★★★★

Convert 1270 m into square cm. (1m = 100 cm)

Answered: 1 week ago

Question

★★★★★

Provide a complete solution to each question. Explain your idea using proper terminology. A motorist drives along a highway at an average speed of 124 km/h. The speed limit is 100 km/h. (a) If the...

Answered: 1 week ago

Question

★★★★★

Maxwells equations show that a. Electromagnetic waves move at the speed of light b. The fabric of space is curves by masses c. Force is mass times acceleration d. Regardless of the mass, all object...

Answered: 1 week ago

Question

★★★★★

On January 1 , 2 0 1 8 , Princess Corporation leased equipment to King Company. The lease term is ten years. The first payment of $ 8 0 0 , 0 0 0 was made on January 1 , 2 0 1 8 . The equipment cost...

Answered: 1 week ago

Question

★★★★★

Lucia has a bank account at First Street Bank. She received Form 1099-INT, Interest Income, shown below. She has no other interest or dividends to report. How should this income be reported on...

Answered: 1 week ago

Question

★★★★★

Use Exhibit 1. Which of the following statements is (are) correct? Exhibit 1 Production Possibilities Trucks Cars 1,000 0 800 1,600 500 2,700 0 3,500 x The opportunity cost of the first 500 trucks is...

Answered: 1 week ago

Question

★★★★★

our CEO has asked you to prepare a production cost budget for the MiniY for May 20X8. The actual costs in April 20X8 were: MiniY: Production Cost Budget April 20X8 ProductionUnits of MiniY 3,000...

Answered: 1 week ago

Question

★★★★★

Describe a group you belong or have belonged discuss the stages of group development and suggest how to improve the group effectiveness by using the group development model.

Answered: 1 week ago

Question

★★★★★

The following data refer to one year. Fill in the blanks with required calculations. t material inventory, January 1 Direc Direct material inventory, December 31. $ 8,200 5,400 7,600 3,800...

Answered: 1 week ago

Question

★★★★★

Describe four methods used to estimate sales for budgeting purposes.

Answered: 1 week ago

Question

★★★★★

Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct. Do you agree? Why?

Answered: 1 week ago

Question

★★★★★

Holes-R-Us, an Internet company that sells piercing jewelry keeps transaction records on its sales. At a recent sales meeting, one of the staff presented a histogram of the ZIP codes of the last 500...

Answered: 1 week ago

Question

★★★★★

In 2007 the Council of Europe published a report entitled The European School Survey Project on Alcohol and Other Drugs (www.espad.org). Among other issues, the survey investigated the percent ages...

Answered: 1 week ago

Question

★★★★★

Students were given the assignment to make a histogram of the data on bird counts reported in Exercise 46. One student submitted the following display: a) Comment on this graph. b) Create your own...

Answered: 1 week ago

Previous Question Next Question