Many car owners and car dealers describe their different cars for sale in the local newspapers and list their asking price. Many people shopping for a used car consider the different choices listed in the paper
The market for used cars could be described as A) relatively competitive.
B) perfectly competitive.
C) non-competitive.
D) having high transaction costs.
A
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If the price of a product falls below average total cost in the short run, the firm:
a. has an economic profit. b. cannot cover total fixed costs. c. experiences a loss. d. must always shut down. e. should expand output until MC = MR.
The fact that monopolistically competitive firms charge a price that exceeds marginal cost is responsible for the
a. business-stealing externality that is observed in monopolistically competitive markets. b. product-variety externality that is observed in monopolistically competitive markets. c. inefficiencies of the long-term losses earned by monopolistically competitive firms. d. persistence of positive profits into the long run for monopolistically competitive firms.
The aggregate supply/aggregate demand model is used to help understand...
What will be an ideal response?
Marginal cost generally ________ quantity produced.
A. rises with B. determines C. is not related to D. falls with