hey thanks for previous replys to earlier questions...espicially "economyst", you have been a great help !!!
stuck on these questions, so if anyone can help plz do !!
Q:state whether the folloing statements are true or false and EXPLAIN clearly the reasons for your view ( P.s if you cant bethored to explain fully, please advice me on what i should discuss further inorder to make the answer a little longer)
a) "as long as the firm has to pay for an input, it would be wasteful not to use input services purchased"
b) " a profit-maximising competitve firm will never produce in the region where average variable cost is declining"
c) " the reason why firms often charge a lower price at higher output levels is because they are able to spend their fixed costs over a larger production run"
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 differnce between price and average cost"
THANX in advance !!
p.s if "economyst" is here, can u plz tell me your email address, you have been a real life saver !!
Thanks for your confidence in me.
a) a toughie, but I would go False. At least some inputs have secondary markets. That is, the best use for an input is to re-sell it to someone else.
b) A natural monopoly has declining AVCs. However, I believe the answer is True for competative firms, They will opperate when a rising MC=Price
c) False, output and therefore price are determined where MC=MR, regardless of fixed costs.
d) False, a monopolist operates in the elastic portion.
e) False, same as c.
Sorry, I will not give you my email. I am a volunteer. And as my old econ advisor used to say, "Volunteers Do It For Free" I will probably continue to provide free help as my own time permits. But I might not.
he didn't want your email to pay you, he wanted it so he could scab more answers off you as he needed.
Its good there is someone like you to help.You don't have to give answers, but discussing ways to solve problems is good.
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