If transaction costs are high, then it is more likely a firm's demand curve is downward sloping
Indicate whether the statement is true or false
True . Transaction costs increase the costs for consumers to find a new firm. Thus high transaction costs allow a firm to charge more than others.
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Which of the following is NOT a divisible good?
A) gasoline B) tap water C) electricity D) movies
What are natural experiments?
What will be an ideal response?
In the long run, a competitive price-searcher firm will
a. produce a greater variety of goods than do firms in other market structures b. produce a greater output level than would a perfectly competitive firm c. produce where price equals average total cost d. earn an economic profit e. suffer a loss because of its advertising budget
In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost, but higher than marginal cost. B. equal to average total cost, but lower than marginal cost. C. equal to demand, but higher than average total cost and marginal cost. D. equal to marginal cost and marginal revenue.