An assumption of the BECOMP model is:

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Question restatement: An assumption of the BECOMP model is: (options) a) Heterogeneous firms, b) Constant marginal costs, c) Constant average costs, d) Perfect competition.

Option a: Heterogeneous firms. In many standard BECOMP frameworks, firms are treated as identical or homogenous to simplify analysis of market structure and cost pass-through. Assuming heterogeneous firms would complicate the model and is not a core assumption of the typical BECOMP setup. Therefore this statement is not aligned with the standard BECOMP assumptions.

Option b: Constant marginal costs. This is a common simplifying assumption in BECOMP models to keep supply decisions linear and tractable, so that marginal cost does not vary with output. It helps in deriving neat relationships between costs, prices, and quantities and is a standard assumption in many BECOMP-like analyses.

Option c: Constant average costs. While some models may assume certain cost constancies, constant average costs across all output levels is less typical in BECOMP frameworks than constant marginal costs. Average cost may still vary with output due to fixed costs, so declaring it constant across all levels would be more restrictive and not a shared default assumption in many BECOMP treatments.

Option d: Perfect competition. The BECOMP model often sits within a context where firms are not perfectly competitive—models like BECOMP incorporate elements that deviate from perfect competition to examine strategic behavior, market power, or product differentiation. Hence, assuming perfect competition would be inconsistent with the typical purpose of BECOMP models.

Option-by-option takeaway: The prompt focuses on an assumption that streamlines treatment of firm costs in the BECOMP framework. Among the choices, constant marginal costs stands out as the standard simplifying assumption that aligns with the model’s analytical needs. The other options introduce elements (firm heterogeneity, constant average costs, or perfect competition) that either complicate or contradict the conventional BECOMP setup, making them less consistent with its typical assumptions.

Additional context: If you recall, many macro/micro models use constant marginal costs to derive linear supply curves and straightforward relationship between price and output, whereas heterogeneity and non-constant averages typically require more complex modeling choices. Perfect competition would imply zero profits and price-taking behavior that may not capture the BECOMP’s intended features. Overall, the selection of constant marginal costs reflects a standard simplifying assumption used to facilitate tractable analysis in BECOMP-type analyses.

An assumption of the BECOMP model is:

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An assumption of the BECOMP model is:

查看解析

登录即可查看完整答案

类似问题

When the average total cost curve is downward sloping, what must be true about the marginal cost curve?

Refer to the accompanying graph to answer the next question. The firm is experiencing gains from specialization up to what level of output along the marginal cost curve?

Part 1In the​ figure, the marginal cost of the last unit produced by the profit maximizing firm is A. ​$15. B. ​$10. C. ​$5. D. ​$20. Part 1

A company produces a popular brand of cookies. In the short run, the size of its factory and equipment are fixed, but it can hire more or fewer workers. Suppose the company observes that its marginal product of labor is increasing. What will happen to its marginal cost of production?

When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC after the increase is

更多留学生实用工具

希望你的学习变得更简单

Part 1In the figure, the marginal cost of the last unit produced by the profit maximizing firm is A. $15. B. $10. C. $5. D. $20. Part 1