Question

these questions are about T or F
As long as the firm has to pay for an input, it would be wasteful not to use all input services purchased,

A profit-maximising competitive firm will never produce in region where average variable cost is declining

The reson why firms often charge a lower price at higher output levels is because they are able to spread their fixed costs over a large production run


A monoplist is best off opearing on the inelastic portion of the demand curve, where it can increase its price without losing many customers

A monoplist attempts to maximise the different between price and average cost


Take a shot. What do you think, and why.