Refer to the above figure. The market supply and demand curves in a perfectly competitive market intersect at $4. Which of the graphs represent the situation for an individual firm?
A. Panel A
B. Panel B
C. Panel C
D. Panel D
Answer: C
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Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's total fixed costs equal
A. $2,000. B. $18,000. C. $20,000. D. $22,000.
A production possibilities frontier can shift inward if there is
a. an increase in the unemployment rate b. mandatory retirement at age 55 c. an improvement in technology d. a larger work force e. a larger capital stock
A decrease in the price of capital relative to the price of labor is likely to result in a substitution of capital for labor in the production process
a. True b. False Indicate whether the statement is true or false
The trade-off between risk and expected value is exactly the kind of choice you have to make whenever you think about investing money in:
A. retirement funds. B. One needs to think about the trade-off to invest in all these things. C. stocks. D. bonds.