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The correct answer for this question is D but I don't know why. 42) Assume that you are investigating the market of Bucky's T-shirts. You
The correct answer for this question is D but I don't know why.
42) Assume that you are investigating the market of Bucky's T-shirts. You know only,r that demand is given by P 100 2Q and the cost function is given by TC 20 + IZQ, marginal cost is given by MC= 12. Find the false report among the following: a) If Bucky's is a monopoly, the quantity sold in the market will be 22, with the price 56. b) If Bucky's is a monopolisticljg.F competitive firm, prot will be the same as in (a), in the short run- c) If Bucky's is a monopolisticlj,r competitive finn, other rms will enter the market and the demand curve for each rm will shift toward the origin (1] If the market is operated by monopolistic competition, in the long run the marginal cost will be tangent to the demand curve at the equilibrium quantity, and rm will have less but still positive economic protStep by Step Solution
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