Toby sells wheat in a perfectly competitive market. This month Toby receives a higher price for a bushel of wheat than he did last month. Which of the following might explain this?
A. The market demand for wheat increased.
B. The market demand for wheat decreased.
C. Firms entered the market.
D. Toby's costs have decreased.
Answer: A
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Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 but the equilibrium quantity had decreased to 50 units
Other things remaining the same, which of the following could explain this change? A) Shift of the supply curve of Z to the left B) Shift of the supply curve of Z to the right C) Shift of the demand curve for Z to the left D) Shift of the demand curve for Z to the right
In the above figure, the line represented by the "2" is the
A) average fixed cost. B) average variable cost. C) total cost. D) average total cost.
Suppose the market for good X has a four-firm concentration ratio of 0.50. Furthermore, assume that total sales in the industry are $1.2 million. Based on this information, we know that sales for the largest four firms in the industry equal (in aggregate):
A. $2,400,000. B. $240,000. C. $600,000. D. $60,000.
Compared with a competitive market with the same cost and market demand circumstances, a monopolist has
A. More pressure to reduce costs and more reason to improve quality. B. Less pressure to reduce costs and more reason to improve quality. C. Less pressure to reduce costs and less reason to improve quality. D. More pressure to reduce costs and less reason to improve quality.