M
manifold
Member
I'm having trouble getting the answer out to Q12 because the marginal cost / revenue curve are crossing each other more than once. Would someone mind talking me through the answer (B) please?
12. A firm is part of a monopolistically competitive market. It is known to be in a long run equilibrium position and earning only normal profits.
From the information given in the table what will be the output of the firm?
A Greater than 100 but less than 200
B Greater than 200 but less than 300
C Greater than 300 but less than 400
D Greater than 400 but less than 500
12. A firm is part of a monopolistically competitive market. It is known to be in a long run equilibrium position and earning only normal profits.
Code:
Output Total Revenue Total Cost
100 500 600
200 1,000 700
300 1,200 900
400 1,900 1,200
500 2,000 2,300
From the information given in the table what will be the output of the firm?
A Greater than 100 but less than 200
B Greater than 200 but less than 300
C Greater than 300 but less than 400
D Greater than 400 but less than 500