Econ111 (1 Viewer)
- Thread starter pump
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There u go see attached enlighten us, cos i'm struggling.
Re: Econ111 assignment
One of the questions >>
please correct me in few words.
One of the questions >>
State whether the following statements are true or false and explain clearly the
reasons for your view:
(a) ‘As long as the firm has to pay for an input, it would be wasteful not to use
all input services purchased.’ --> F
(b) ‘A profit-maximising competitive firm will never produce in the region
where average variable cost is declining.’--->F
(c) ‘The reason why firms often charge a lower price at higher output levels is
because they are able to spread their fixed costs over a large production
run.’---> T
(d) ‘A monopolist is best off operating on the inelastic portion of the demand
curve, where it can increase its price without losing many customers.’
(e) ‘A monopolist attempts to maximise the difference between price and
average cost.’
reasons for your view:
(a) ‘As long as the firm has to pay for an input, it would be wasteful not to use
all input services purchased.’ --> F
(b) ‘A profit-maximising competitive firm will never produce in the region
where average variable cost is declining.’--->F
(c) ‘The reason why firms often charge a lower price at higher output levels is
because they are able to spread their fixed costs over a large production
run.’---> T
(d) ‘A monopolist is best off operating on the inelastic portion of the demand
curve, where it can increase its price without losing many customers.’
(e) ‘A monopolist attempts to maximise the difference between price and
average cost.’
prusso said:post up the assignment, i did econ111 last year, i prob remember alot of the stuff
please correct me in few words.