QUESTION 2 Figure 13-13 and cost per unit ATC MR Refer to Figure 13-13. If the d
ID: 1123613 • Letter: Q
Question
QUESTION 2 Figure 13-13 and cost per unit ATC MR Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen to its average cost of production in the long run? It will probably fall since the firm must be cost efficient to remain competitive. It will probably fall since the firm will be selling less than its current amount. It will probably rise since the firm will be producing less than its current amount. It will probably rise since its long-run demand is likely to be higher QUESTION 3 Figure 12-7 ght A Match Case Whole Words 1 of 1 match
Explanation / Answer
2. (iv) It will probably rise since the long-run demand is likely to be higher.
(In the long-run, more firms enter the industry, the average cost curve moves up to meet the demand curve where firms would be making only normal profits).
1. (iii) Kenny G.
2. (iv) Smooth jazz.
(Less intense, more easy listening)
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