In short-run equilibrium, a perfectly competitive firm
A. may earn a profit or a loss.
B. always earns a profit.
C. never earns a profit.
D. earns a profit only if the firm has no fixed cost.
Answer: A
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In the figure above, S is the supply curve and D is the demand curve in the unregulated, competitive market for gasoline in Motorland. The external cost of gasoline is constant at $1.50 per gallon
The unregulated, competitive market for gasoline in Motorland A) produces the efficient quantity of gasoline. B) overproduces by 0.2 million gallons of gasoline a month. C) underproduces by 0.1 million gallons of gasoline a month. D) overproduces by 0.1 million gallons of gasoline a month.
If social regulation causes the supply curve in a market to shift up because of higher marginal costs, then:
a. both consumer and producer surplus will decrease. b. both producer and consumer surplus will increase. c. consumers will gain at the expense of producers. d. producers will gain at the expense of consumers. e. there will be no change in the sum of producer and consumer surplus, although its division may change.
When you buy something, you do so because of the satisfaction you expect to receive from having and using that good. Another term that can be used for satisfaction is
A. price elasticity. B. utility. C. need. D. purchasing power.
Refer to the following table to answer the question. Demand is most elastic between:PriceQuantity Demanded$2.0026$4.0022$6.0018$8.0014$10.0010
A. $6 and $8. B. $4 and $6. C. $2 and $4. D. $8 and $10.