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Will a firm in a competitive in a market ever produce a positive level of output in the range where the marginal cost is falling? |
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :No, because the <a href="https://interviewquestions.tuteehub.com/tag/essential-975317" style="font-weight:bold;" target="_blank" title="Click to know more about ESSENTIAL">ESSENTIAL</a> condition of producer's <a href="https://interviewquestions.tuteehub.com/tag/equilibrium-974342" style="font-weight:bold;" target="_blank" title="Click to know more about EQUILIBRIUM">EQUILIBRIUM</a> is that marginal cost (MC) <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> should be rising. So, a firm will <a href="https://interviewquestions.tuteehub.com/tag/produce-1167752" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCE">PRODUCE</a> that quantity of output at which its MC is rising and not falling.</body></html> | |