Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has? A. maximized its total revenue B. set price equal to its average costC. equated marginal revenue and marginal cost…
The slope of marginal revenue curve is ? A. always equal to one. B. half as steep as the demand curve C. the same as the slope of the demand curveD. twice as steep as the demand curve
Economic profits are ? A. the difference between total revenue and total costs.B. anything greater than the normal opportunity cost of investing C. the opportunity costs of all inputs D. a rate of profit that is just sufficient to keep…
A normal rate of profit ? A. Is the rate of return on investments over the interest rate on risk-free government bonds.B. is the rate that is just sufficient to keep owners or investors satisfied. C. is the difference between…
If firms can neither enter nor leaves an industry, the relevant time period is the ? A. immediate run B. intermediate run C. long runD. short run
The cosmetics industry is not considered by economists to be a good example of perfect competition because ? A. there are many EU and government health controls on cosmetic products B. there are a very large number of firms in…
If a firm has some degree of market power, then output price ? A. no longer influences the amount demand of the firm’s productB. becomes a decision variable for the firm C. is guaranteed to be above a firm’s average…
Market power is ? A. a firm’s ability to monopolies a market completely.B. a firm’s ability to raise price without losing all demand for its product C. a firm’s ability to sell any amount of output it desires at the…
A firm will shut down in the short run if ? A. fixed costs exceed revenues. B. it is suffering a loss.C. variable costs exceed revenues D. total costs exceed revenues
A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ? A. £35 B. £15…