Question

Q 3. Evaluate the following statements whether they are true or false. Justify your answer with an

appropriate reason. (Draw a graph if it is necessary). [12 Marks]

a) The long run equilibrium condition for the competitive firm is P = LRAC = MR = MC.

b) If the total cost function is given by TC = 10,000 +10Q +85 Q2

, the associated total

fixed cost and total variable functions are given by: TFC = 10,000 and TVC =10Q +85

Q

2

respectively.

c) A monopolistically competitive firm cannot successfully maintain positive economic

profits in the long-run

d) Under kinked demand theory the prices of oligopolists are predicted to be rather rigid

or 'sticky'.

e) A firm not having the ability to influence the price of its goods and services and having

to accept the equilibrium price in the market of that good is a price taker.

f) For a monopoly producing a certain amount of output, price is less than marginal

revenue.​

Answer 1

Answer:

answer is 2 ok pls follow me price