In the long run in a competitive market,
a. existing firms can increase their plant size, and new firms can enter the market
b. existing firms can increase their plant size, but the number of firms is the market is fixed
c. new firms can enter the market, but existing firms cannot vary their plant size
d. new firms can enter the market, but only if existing firms decrease their plant size in the short run
e. existing firms can increase their plant size, only if some other firms exit
A
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In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same
Indicate whether the statement is true or false
Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $50. A point on Sam's budget constraint would be:
A. 20 tanning sessions and 8 rounds of golf. B. 10 tanning sessions and 5 rounds of golf. C. 10 tanning sessions and 4 rounds of golf. D. 10 tanning sessions and 2 rounds of golf.
If a profit-maximizing monopolist faces a downward-sloping market demand curve, its
a. average revenue is less than the price of the product. b. average revenue is less than marginal revenue. c. marginal revenue is less than the price of the product. d. marginal revenue is greater than the price of the product.
If the firm were a perfect competitor in the long run, how much would its output be?
