Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run?
a. Both will sell their products at a price equal to average total cost, but only the price taker will produce at minimum average total cost.
b. Both will sell their products at a price equal to average total cost, but only the competitive price searcher will produce at minimum average total cost.
c. Only the price taker will sell its product at a price equal to average total cost.
d. Only the competitive price searcher will sell its product at a price equal to average total cost.
A
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The acquisition of more than 10 percent of the shares of ownership in a company in another country is known as
A) net national investment. B) portfolio investment C) net exports. D) none of the above
If the four-firm concentration ratio of an industry is
A) near 100, the industry is considered very competitive. B) less than 40, the industry is considered an oligopoly. C) over 40, the industry is considered monopolistic competition. D) less than 40, the industry is considered monopolistic competition. E) close to 0, the industry is considered a monopoly.
Positive-Incentive
What will be an ideal response?
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. This market will be in equilibrium if the price per cheeseburger is
A. $5. B. $6. C. $7. D. $8.