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FRQ __in the long run under perfect competition, the firm demonstrates efficiency in the following ways:__ A. price is at minimum average cost which means the consumer obtains goods and services at the lowest costs of production. It also means the producer must sell at this low price or not be able to compete with other firms who sell at this market price. this demonstrates efficiency. B. Zero economic profits or normal profits. These profits include the implicit costs or that the producer is being paid the value of its resources if they were employed elsewhere. this is just a minimum payment to the firm to ensure continuing service. C. Price is equal to marginal cost. this is the socially optimal price. the consumer is able to coax out one or more units of a good from the producer at exactly the marginal cost of producing that unit.

__in the long run under monopolistic competition, the firm is inefficient compared to the perfect competition in the following ways:__ A. price is at average cost but not at minimum average cost. this is an indication of inefficiency resulting from under-utilization of capacity or excess capacity. P is greater than marginal cost; thus, socially optimal pricing is not attained.