What is the nature of the elasticity of the demand curve faced by perfectly competitive firm?
A. Perfectly inelastic
B. Perfectly elastic
C. Unit elastic
D. Highly elastic
Answer: B
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In the figure above, if the firm is regulated using an average cost pricing rule, the firm
A) avoids an economic loss, but produces less than the efficient quantity and creates a deadweight loss. B) incurs an economic loss, but produces the efficient quantity and creates a deadweight loss. C) avoids an economic loss, is able to produce the efficient quantity, and therefore avoids creating a deadweight loss. D) avoids an economic loss, produces the efficient quantity, and creates a deadweight loss. E) incurs an economic loss, produces the efficient quantity, and avoids creating a deadweight loss.
It is not surprising to see a rather __________ volume of mergers and acquisitions in Germany given how its __________ conflicts are resolved
A) high; shareholder-lender B) high; manager-stockholder C) low; shareholder-lender D) low; manager-stockholder
Suppose a perfectly competitive firm's total revenue is equal to $210 and its output is 70 units, when its marginal-cost curve intersects the marginal-revenue curve. What is the marginal revenue earned by the firm?
a. $15 b. $3 c. $30 d. $7 e. $70
The supply curve reflects the
a. inverse relationship between price and quantity offered b. positive relationship between demand and supply c. negative relationship between price and quantity bought d. positive relationship between price and quantity bought e. positive relationship between price and quantity offered