Question

 3. Use Figure Three on the next to the last page to answer (3). In the longrug competitive equilibrium:

 a) what is the competitive firm's output?

 b) what is the competitive industry's price?

 c) what is the competitive firm's profits in this long run equilibrium?

 4. Use Figure Four on the last page to answer (4). In the short run, what is the monopolist's:

 a) output?

 b) price?

 c) firm's profits per-unit?

 4) firm's total profits?

 5. Use Figure Five on the last page to answer (5). In the long ran

 A) what is the monopolist's price?

 b) what is the monopolist's output?

 c) what is the monopolist's total profits?

 d) is the mosopolist allocatively efficient? If so, why? Ifnct, what is the allocatively efficient output level?

 Label the allocatively efficient level of output as Qso on Figure Five.

 e) is the monopolist technologically efficient? If so, why? If not, what is the techmologically efficient

 output level? Label this output as Quas on Figure Five.

Answer 1

3.

A. 600
(Competitive firm produces in the long run at the point where LRAC is minimum.)

B. 14
(Price in the Long run = minimum of LRAC.)

C. Zero
(Competitive firm earns zero economic profits in the long run as price = minimum of LRAC.)

(Note: As HOMEWORKLIB's policy, one question is to be answered at a time.)