Input prices fall as entry occurs in a decreasing-cost industry.
Answer the following statement true (T) or false (F)
True
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A trade-off refers to
A) sacrificing one thing for another. B) deciding who consumes the products produced in an economy. C) allowing the government and other organizations to choose for us. D) holding other variables fixed.
The foundational principle that makes insurance companies work is called:
A. risk pooling. B. risk assignment. C. catastrophic causation. D. risk analysis.
When theaters charge lower prices for matinee showing, it is not price discrimination, since it is more expensive to operate a theater during the day, as compared to the evening hours.
Answer the following statement true (T) or false (F)
To maximize profit a perfectly competitive firm supplies a good up to the point at which
A. the marginal revenue is higher than the marginal cost. B. the marginal cost of producing the good is zero. C. the average revenue equals average cost. D. the price of the good equals marginal cost.