Microeconomics Answers

One who follows the Cournot duopoly strategy assumes that competing firms …

If a firm is producing where its short-run marginal cost (SMC) = price and the long-run marginal
cost (LMC) is less than long-run average cost (LAC), then it would do better in the long run by …

Which one of the following is NOT an example of price discrimination?

Which is NOT true of state-owned and managed natural monopolies?

A perfect competitor found that it could produce a maximum output of 100 units each day, which it
can sell at the market price or AR of R100, but even at this rate, it would make a loss. Considering
this information, under what circumstances would it definitely make a smaller loss if it shut down
and produced nothing

When a profit-maximising firm is at its short-run optimum point …

When economic profit exists for a firm, it is very feeble because …

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the marginal cost of production when the firm hires the 7th worker?

Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run.

The sales data for the Lodestar Sport Apparel company for the last 12 years are as follow