The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______

A. perfectly inelastic; perfectly elastic
B. downsloping; perfectly elastic
C. downsloping; perfectly inelastic
D. perfectly elastic; downsloping


Answer: B

Economics

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A good’s marginal social cost is defined as its

A. marginal private cost minus the value of any detrimental externality. B. incidental cost. C. marginal private cost plus the value of any taxes paid on its production. D. marginal private cost plus its incidental cost.

Economics

Ron's Hamburger Joint is the only restaurant in town. The above figure represents Ron's cost, the market demand, and marginal revenue curves. Ron operates as a single-price monopoly

a. How many hamburgers does Ron produce? b. What price does Ron charge for a hamburger? c. What is Ron's total revenue? d. What is his total cost? e. What is Ron's economic profit?

Economics

Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of the deadweight loss caused by this monopoly?

A. $242,000 B. $55,250 C. $30,250 D. $5,250

Economics

Social Security spending and Medicare spending are all financed with revenues held in trust funds

Indicate whether the statement is true or false

Economics