Market power refers to the ability of a firm to set its product price
Indicate whether the statement is true or false
T
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The determination of prices in the market for automobiles is primarily a concern of: a. positive economics
b. normative economics. c. microeconomics. d. macroeconomics.
Figure 11-6
The profit-maximizing monopolist in Figure 11-6 will sell its output at
a.
P1.
b.
P2.
c.
P3.
d.
P4.
Refer to the graph shown. The monopolistically competitive firm represented is in:
A. short-run equilibrium because price exceeds average total cost at the profit-maximizing output level. B. both short-run and long-run equilibrium because price equals marginal cost at the profit-maximizing output level. C. long-run equilibrium because economic profits are zero at the profit-maximizing output level. D. both short-run and long-run equilibrium because price exceeds average total cost at the profit-maximizing output level.
Opportunity cost is the difference between the nominal and real cost of some action.
Answer the following statement true (T) or false (F)