horizontal sum of competitor MC curves

Related BrainMass Solutions

• Selecting the suitable option

  a) horizontal sum of the individual firms'marginal cost curves above AVC. b) vertical sum of the individual firms'marginal cost curves above AVC. c) horizontal sum of the individual firms'marginal cost curves above ATC.

• Monopolistic competition

  380923 Monopolistic competition The monopolist and the perfect competitor differ in that: they face different demand curves the monopolist does not always produce at an output at which MC=MR the monopolist is always a large firm the

• Maximum profit

  A monopolistic competitor maximizes profit by producing a quantity that corresponds to the intersection of the marginal revenue and marginal cost curves or when MR = MC.

• Differentiating between Types of Cost Curves

  The MC curve cuts the ATC curve at the lowest point on the ATC curve. This solution of 213 words explains the shapes of four different cost curves and explains the relationship between the cost curves.

• Economic Margins, Price, Elasticity

  Plot each of the cost curves. c. At what quantity of output does marginal cost? equal average total cost and average variable cost? 3. Using the table in exercise 1, explain what happens to ATC when MC > ATC, MC < ATC, and MC ¼ ATC. 4.

• Production Costs Analysis

  The ATC is the sum of AFC and AVC vertically. (ATC=ATC+AVC) ATC curve is decreasing when the MC curve is below it, the ATC curve is increasing when the MC curve is above it.

• calculate all cost curves

  225248 Cost Data Cost Data (Excel application) TC = 20 + 4Q TC = 20 + 2Q + 0.5Q2 TC = 20 + 4Q - 0.1Q2 Using Excel, calculate all cost curves using a range of quantity from 0 to 15.

• Analyzing production costs - Fixed and Variable costs

  The MC, AVC, and ATC curves are U-shaped, reflecting first increasing and then diminishing returns. The ATC is the sum of AFC and AVC vertically.

• Competitive Markets Concepts

  In the short run P > MC or P < MC. Answer D: TRUE The industry demand curve is always downward sloping. However, the demand curves that firms face are usually horizontal.