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I need help with the following quations 21. Which of the following is not a barr

ID: 1126106 • Letter: I

Question

I need help with the following quations

21. Which of the following is not a barrier to entry for the firm a. Economies of scale b. Cost complementarity c. No patents 22. For the firm to realize economies of scale fiull, it must a. Set P=MC b. Produce at the minimum long average cost c. Set P min AVC. 23. Long run equilibrium under perfect completion requires that a, P=MC b. P=min ATC c. (a) and (b) 24. What is the profit under monopolistic competition in the long run: a. Positive b. Negative c. Zero Questions 25-26 Consider the cost function C 22 25. This cost function implies that there are: 2.2 a. Economies of scale b. Diseconomies of scale c. Constant returns to scale. 26. The corresponding long-run average cost curve to the best answer above is a. rising b. declining c. constant a. MR> 0 and total revenue is st its maximum b, MR = 0 and total revenue is at its maximum c. MR

Explanation / Answer

As per Chegg rule, only the first 4 questions will be answered.

21> b

Cost Complementarities exist in a multiproduct cost function when the marginal cost of producing one output is reduced when the output of another product is increased.

22> b

In an economies of scale, the most efficient production output should be produced.

23> c

In long run, the product is produced in the most efficient manner.

24> c

In the monopolistic competition, due to competition, the profit level tends to zero.