Which of the following statements is correct?
A. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve
for a purely competitive industry is downsloping.
B. The demand curve for a purely competitive firm is downsloping, but the demand curve for a
purely competitive industry is perfectly elastic.
C. The demand curves are downsloping for both a purely competitive firm and a purely
competitive industry.
D. The demand curves are perfectly elastic for both a purely competitive firm and a purely
competitive industry.
Answer: A
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The average total cost curve
A) is U-shaped. B) diminishes initially because average fixed costs diminish. C) increases eventually because of diminishing returns. D) All of the above answers are correct.
The price elasticity of supply for toys is 0.36, so that a 1 percent increase in price would generate a
a. 0.36 percent increase in quantity supplied b. 3.60 percent increase in quantity supplied c. 0.36 percent decrease in quantity supplied d. 3.60 percent decrease in quantity supplied e. 1.36 percent increase in quantity supplied
Michael Jordan averaged 35 points per game over a 100-game season. During the playoff round of 10 games, he averaged 50 points, and in the five-game championship series, he led the Chicago Bulls to victory, averaging 40 points. For the entire season, how many points did Jordan score, what was his average, and did the championship series pull his previous average up or down?
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. What is Larry's economic surplus from attending State College instead of his next best alternative?
A. $10,000 B. $5,000 C. $40,000 D. $20,000