The above figure shows the market for steel ingots. If the market is competitive, then the competitive market level of output is
A) 100 units.
B) 150 units.
C) 50 units.
D) 300 units.
A
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Single-price monopoly is inefficient because
a. side payments are not made b. a monopoly firm charges a price that exceeds its marginal cost c. a monopoly firm charges a price equal to its marginal cost d. a monopoly firm produces the quantity at which P = MR = MC. e. a monopoly firm produces the quantity at which MR = MC.
If we ranked the four market structures on the basis of degree of competition, perfect competition and monopolistic competition would be at opposite ends of the spectrum
Indicate whether the statement is true or false
When the macroeconomy is doing poorly (as it was in 2009), profits of existing firms decrease, creating an incentive for existing firms to exit unprofitable markets
This in turn makes it more difficult for the remaining firms to mark up price over average or marginal cost. Indicate whether the statement is true or false
If MRS > MRT, then the consumer is better off than at equilibrium
Indicate whether the statement is true or false