The above figure shows a perfectly competitive firm. If the market price is $15 per unit, the firm
A) will definitely shut down to minimize its losses.
B) will stay open to produce and will make zero economic profit.
C) will stay open to produce and will incur an economic loss.
D) will stay open to produce and will make an economic profit.
E) might shut down but more information is needed about the fixed cost.
C
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A monopolist that operates along the elastic range of its demand will find that
A) its total revenue increases when price decreases. B) its total revenue decreases when price decreases. C) its marginal revenue is negative. D) it is more profitable to operate along the inelastic range of the demand curve.
Which of the following is the best example of a monopoly in the United States?
a. the U.S. Postal Service. b. the aluminum industry. c. a government-regulated public utility. d. the automobile industry.
A mutual fund for which a fee is paid at the time of purchase is a:
a. no-load fund. b. face-end load fund. c. back-end load fund. d. fixed-end fund. e. front-end load fund.
If government increases its purchases by $20 billion and the MPC = 0.9, the resulting increase in the consumption component of AD is: a. $2 billion
b. $18 billion. c. $180 billion. d. $200 billion.