This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: If not, why not? If so, how can ABC Widget company keep them out (and keep its monopoly position)? P ATC MC Q AVC D 1000 2000 3000 4000 $10.00 $20.00 $30.00 Suppose Demand for Widgets falls to the level shown in the graph below (where, again, we also show ABC Widget Companys relevant per unit costs): 4. At this level of Demand, we would expect in the short run ABC Widget to produce ______________widgets per production period, and to set its price equal to __________dollars per widget. Economic profits for ABC Widget Company will equal __________dollars per period. 5. If Minimum Efficient Scale in production for ABC equals 2600 widgets per production period, what might we expect ABC Widget Company to do in the long run? P ATC MC Q AVC D 1000 2000 3000 4000 $10.00 $20.00 $30.00...
View Full Document