Week 4 Discussion Questions (Due Thursday January 27 2012). No word limitations. List sources used.
#1
In order to maximize profits or minimize losses a competitive firm will produce at the point where MC = MR. Do you agree or disagree with this statement? Explain your answer and use at least 2 examples in your response
#2
For each of the following statements identify the type of market it describes. Use an example from the readings or the internet for each characteristic and explain your choice.
A. The company practices product differentiation
B. The firm earns an economic profit in the long run
C. Maximizes profits by equating MC and MR
D. Has demand curve that is downward sloping
E. Is in a market where new firms can enter the industry selling similar product.
Attachments: