A perfectly competitive firm charges a price which is greater than its marginal cost
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose your uncle offers you $100 today or $150 in 10 years. You would prefer to take the $100 today if the interest rate is
a. 3 percent. b. 4 percent. c. 5 percent. d. None of the above is correct.
Demand is said to be inelastic when:
A. An increase in price results in a reduction in total revenue B. A reduction in price results in an increase in total revenue C. A reduction in price results in a decrease in total revenue D. The elasticity coefficient exceeds one
When a person's income decreases, the slope of the individual's budget constraint stays the same because:
A. the relative prices of the goods haven't changed. B. everything is relatively more expensive now. C. everything is relatively less expensive now. D. the prices of the goods change in the same proportion.
After a price floor of $23 is placed on the market in the graph shown, which area represents total surplus?
A. A B. A + B + C + E + F C. A + B + E D. B + C + E + F