Business, 17.01.2020 06:31 icashaypabozp
Amonopolistically competitive fim doesn't produce where p = mc like a perfectly competitive firm because:
a. the approach to profit maximization used by monopolistically competitive firms is fundamentally different from the approach used by firms in other markets
b. perfectly competitive firms face downskoping demand curves and monopolistically competitive firms do not.
c. p exceeds mr for a monopolistically competitive firm, and i's mr that must equal mc for profift maximization
d. perfectly competitive firms know the price with certainty while monopollstically competitive firms do not
Answers: 2
Business, 21.06.2019 18:50
You are the manager of a firm that produces output in two plants. the demand for your firm's product is p = 20 − q, where q = q1 + q2. the marginal costs associated with producing in the two plants are mc1 = 2 and mc2 = 2q2. how much output should be produced in plant 1 in order to maximize profits?
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Amonopolistically competitive fim doesn't produce where p = mc like a perfectly competitive firm bec...
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