Under monopoly, resources are allocated as efficiently as in perfect competition
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following four firms would most likely NOT be part of a perfectly competitive market?
A) Mark sells his tomatoes at the local farmers market. B) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. C) Village Pizza sells pizza in a college town. D) Space Age Fuel is a gas station in Bend, Oregon.
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output, which of the following is true? A firm will:
A. lose money and shut down in the short run if price falls below $15.
B. lose money, but continue to operate in the short run if price is at least $15.
C. make positive profits any time the price is greater than $15.
D. All of these are true.
We say that a business is operating at peak efficiency when its __________ is held to a minimum.
A. average total cost B. average variable cost C. marginal cost D. price
Assume that for a given consumer, the marginal utility of wine is 100 and the price of wine is $60. Also, assume that the marginal utility of lobster is 200 and the price of lobster is $100. This consumer
A) is in equilibrium. B) should buy more lobster. C) should buy more wine. D) can't tell; insufficient information given to answer the question