There are two different types of producers of a good in an industry (Type A and Type B). The marginal cost curves of the two types are given below. There are 20 Type A firms and 15 Type B firms in the market. Assume that all firms are already in the market, and that they will remain in the market even if the price is below their average cost. Based on this information, which of the following statements is correct? MC 5 배 2.5 2 Type A Type B | | 20 35 MC. 5 3 2.5 | | I | T | | | | 10 13 18 a Select one or more: ㅁ a. The marginal cost of producing the first unit is $2.50. ㅁ b. At a price of $2.50, the market supply is 350 units. c. At a price of $5, the marginal cost of producing the 971st unit is lower for a Type A firm than for a Type B firm. ㅁ d. The marginal cost of producing the 596th unit is $3.

There are two different types of producers of a good in an industry (Type A and Type B). The marginal cost curves of the two types are given below. There are 20 Type A firms and 15 Type B firms in the market. Assume that all firms are already in the market, and that they will remain in the market even if the price is below their average cost. Based on this information, which of the following statements is correct? MC 5 배 2.5 2 Type A Type B | | 20 35 MC. 5 3 2.5 | | I | T | | | | 10 13 18 a Select one or more: ㅁ a. The marginal cost of producing the first unit is $2.50. ㅁ b. At a price of $2.50, the market supply is 350 units. c. At a price of $5, the marginal cost of producing the 971st unit is lower for a Type A firm than for a Type B firm. ㅁ d. The marginal cost of producing the 596th unit is $3.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.1P: A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new...

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