In a competitive market equilibrium:
A) social surplus is minimized.
B) all the gains from trade are not realized.
C) there is Pareto efficiency.
D) all the firms earn positive economic profits.
C
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Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Stackelberg duopoly?
A) $3 B) $9 C) $12 D) $13.50 E) none of the above
In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be:
a. $25. b. $2,500. c. $5,000. d. $7,500.
Maximizing surplus in a market depends not only on the amount bought and sold, but also on:
A. how productive the sellers are. B. who buys and sells it. C. what those consumers do with it. D. None of these statements is true.
A perfect competitor's demand curve and marginal revenue curve are ___________.
Fill in the blank(s) with the appropriate word(s).