Microecon HW.4 - Chapter 9 1 Its false the only that part of the firm's cost curve that is average cost variable curve is the supply curve 3 this

Microecon HW.4 - Chapter 9 1 Its false the only that part...

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Chapter 91.)Its false, the only that part of the firm's cost curve that is average cost variable curve is the supply curve 3.) this probably won't last long for firm A since they probably aren't as efficient as their competitors and they will drive them out of the production market. 6.) I agree, because if they did conflict with the resource efficiency it would be maximizing its profit, since it has resource restrictions, so hand in hand, the firm is making maximum profit due to the two not interfering with each other. 8.) if the computer industry is perfectly competitive, the profits should attract new companies into the market and that would move the supply curve to the right, the prices would drop also which would in turn make sales go up12.) Because if the total cost is lower than the average variable cost of course you are going to continue because you are making a profit, but if you are spending more money than you earming the the short run its better to shut down and cut your losses15.) Because the perfectly competitive price is equal to marginal revenue

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