Student doesnt acknowledge that MR is positive and the reasons for it being 0

Student doesnt acknowledge that mr is positive and

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Student doesn’t acknowledge that MR is positive and the reasons for it being. (0 points) C. 2 points/2 points o One point is earned for stating that the demand curve for the typical firm would shift to the left Student states that the demand curve will decrease and shift inward to a typical firm. (1 point) o One point is earned for the explanation that the entry of new firms reduces the market share of existing firms. Although not directly stated that the new firms would reduce the market share of existing firms, the students answer acknowledges the fact that the other firm’s product will be less demanded. (1 point) D. 1 point/1 point o One point is earned for showing that long-run equilibrium occurs at the tangency of ATC and the demand curve at the profit-maximizing quantity. Student correctly shows the long-run equilibrium. (1 point) E. 1 point/1 point
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o One point is earned for stating “No”. Student states “No.” (1 point) F. 1 point/2 points o One point is earned for stating “No”. Student states, “No.” (1 point) o One point is earned for the explanation that at the long-run equilibrium, P > MC Student does not acknowledge that at long-run equilibrium P > MC. (0 points) Total possible points: 12 points Points earned: 9 points Total score: 9/12 or 75%
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