True or False? - True or False? please explain your reasoning.Thank you a. The short-run average total cost can never be less than the long-run average total cost. b. The short-run average variable cost can never be less than the long-run average total cost. c. In the long run, choosing a higher level of fixed cost shifts the long-run average total cost curve upward.

If a statement is true, explain why; if it is false, identify the mistake and try to correct it. - If a statement is true, explain why; if it is false, identify the mistake and try to correct it. a. A profit-maximizing firm should select the output level at which the difference between the market price and marginal cost is greatest. b. An increase in fixed cost lowers the profit-maximizing quant...

Kate’s Katering provides catered meals, and the catered meals industry is perfectly competitive - Kate’s Katering provides catered meals, and the catered meals industry is perfectly competitive. Kate’s machinery costs $100 per day and is the only fixed input. Her variable cost is comprised of the wages paid to the cooks and the food ingredients. The variable cost associated with each level of ou...

A monopolist knows that if it expands the quantity of output it produces from 8 to 9 units, that will lower the price of its output from $2 to $1. - A monopolist knows that if it expands the quantity of output it produces from 8 to 9 units, that will lower the price of its output from $2 to $1. Calculate the quantity effect and the price effect. Use these results to calculate the monopolist’s mar...

Suppose that De Beers is a single-price monopolist in the market for diamonds. - Suppose that De Beers is a single-price monopolist in the market for diamonds. De Beers has five potential customers: Raquel, Jackie, Joan, Mia, and Sophia. Each of these customers will buy at most one diamond—and only if the price is just equal to, or lower than, her willingness to pay. Raquel’s willingness to pay is...