Which firm in figure 115 is earning a profit a firms

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Calculus: Early Transcendental Functions
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Chapter 13 / Exercise 81
Calculus: Early Transcendental Functions
Edwards/Larson
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90. Which firm in Figure 11.5 is earning a profit? A. Firms A and C B. Firms B and D C. Firm A only D. All of the firms are earning a profit Firm A is earning a profit based on the fact that the price level at the point where MR is equal to MC is greater than ATC.
91. Which firm in Figure 11.5 is using marginal cost pricing?
92. Which firm in Figure 11.5 is producing at the output level that maximizes production efficiency? A. Firms A and C only
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Calculus: Early Transcendental Functions
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Chapter 13 / Exercise 81
Calculus: Early Transcendental Functions
Edwards/Larson
Expert Verified
11 93. Which firm in Figure 11.5 is most likely a monopolistically competitive firm? Firm D is most likely a monopolistically competitive firm because it has a relatively elastic demand curve and it is earning zero economic profits. B. Advertising. C. Improved quality. D. Zero economic profit. Any tactic, other than price cuts, used to increase sales, brand loyalty or market share can be considered nonprice competition. 94. Which of the firms in Figure 11.5 is most likely a monopoly? 95. Which type of firm engages in non-price competition? Competitive firms compete by achieving greater efficiency and offering their products at the lowest possible price. Firms in imperfectly competitive markets don't "compete" in the same way because price reductions aren't a very effective way to increase sales or market share in monopolistic competition. Therefore, imperfectly competitive firms engage in nonprice competition. 96. In monopolistic competition, a firm: 97. All of the following are examples of nonprice competition except: A. Better service. B. Advertising. C. Improved quality. D. Zero economic profit. Any tactic, other than price cuts, used to increase sales, brand loyalty or market share can be considered nonprice competition.

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