objective formulas, efficacy

Question 1

MC=MR

Answer 1

profit max
dynamic effieciny as long as it is going into research and development

Question 2

MC=AR

Answer 2

allocative efficiency

Question 3

MC=ATC

Answer 3

productively efficient

Question 4

MR=0

Answer 4

revenue max

Question 5

ATC=AR

Answer 5

sales max

Question 6

allocatively efficient

Answer 6

MC=AR
consumers wants and needs are met

Question 7

productively efficient

Answer 7

lower average cost/ mes MC=ATC

Question 8

revenue max

Answer 8

to gain market share MR=0
still likely to make supernormal profit

Question 9

sales max

Answer 9

wages increase
normal profit
limit competition
ATC=AR
food indrusty it is likely to expire
new seasons
lose of tread
x - inefficacy - monopolies - oligerlies - lack of competition - high barriers

Question 10

evaluation

Answer 10

not pe MC=AC not at the lowest AC mes cost CP not ganing from full economic of scale not gaining from full economic of scaler
identify which

Question 11

KAA revenue

Answer 11

revenue max - mr=0 increase market share, lower price/increase, lowered your average cost

economics of scale

become more productively efficient and therefore more allocatively efficient

Question 12

evaluation revenue

Answer 12

not fully productively
supernormal profit have reduced so less research and development
long run quality aint improving therefore consumer surplus and allocatively efficacy will decrease as well

Question 13

KAA sales max

Answer 13

AC=AR
normal profit
reduce waste
reduce incentive to enter the market
reduced storage cost
revenue perhaps lost

Question 14

normal profit in perfect competition long run what efficecnies

Answer 14

allocatively

productively

Question 15

abnormal profit in perfect competition short run efficiency

Answer 15

allocatively effect
dynamic efficient

small threat of competition as they are xineficent but not too much as there is only a small difference between where they are producing and their mes

Question 16

A firm changes its goal from profit max to sales max how does it change profit and quantity

Answer 16

price falls - selling price, cost price stays the same
quantity increases

allocatively effiecny improves consumer surplus

Question 17

A firm changes its goal from sales maximising to revenue maximising how does price and quantity change

Answer 17

price increases
quantity decreases

allocatively efficient falls consumer surplus falls

Question 18

statc efficiency

Answer 18

you are being both productively and alloactibely inefficient

Question 19

economic efficiency

Answer 19

allocatively effeicnet
productively efficient
reduce x inefienct
still try to achieve dynamic effiecnty