Perfectly competitive firms are referred to as price takers because the individual firm is so small relative to the market that its output decisions will not have any effect on the market-determined price
Indicate whether the statement is true or false
TRUE
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When demand increases and the demand curve shifts to the right, equilibrium price ________ and equilibrium quantity ________
A) increases; increases B) decreases; decreases C) decreases; increases D) increases; decreases
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. How much more profit would a monopolist earn compared to the combined profit earned by the two duopoly firms together in the Nash equilibrium?
A. $180,000 B. $2,222.22 C. $11,111.11 D. $9,333.33
The marginal product curve is a mirror image of
a. The average cost curve b. The average fixed cost curve c. The total cost curve d. The marginal cost curve
Which of the following is a firm that makes its stock available to be bought and sold by financial investors?
a. Public company b. Sole proprietorship c. Private company d. Business entity