Comparing a perfectly competitive market to a monopoly, which of the following is true?
A. Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly.
B. Price will be higher than marginal cost in the perfectly competitive market but will be equal to marginal cost in the monopoly.
C. Price will be equal to marginal revenue in the perfectly competitive market but will be higher than marginal revenue in the monopoly.
D. at that point on the market demand curve which intersects the marginal cost curve.
Answer: C
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If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a $12 watch in New York City
a. c and e b. 10 U.S. dollars c. 12 U.S. dollars d. 14.4 U.S. dollars e. 14.4 Canadian dollars
A business incurs the following costs per unit: Labor - $125/unit; Materials $45/unit and rent - $250,000/month. If the firm produces 1,000,00 . units a month, the total fixed costs equal
a. $250,000 b. $50,000 c. $20,500 d. $30,000
If a firm in a perfectly competitive industry is experiencing average revenues greater than average costs, in the long-run
a. Some firms will leave the industry and price will rise b. Some firms will enter the industry and price will rise c. Some firms will leave the industry and price will fall d. Some firms will enter the industry and price will fall
Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply. b. Because producers ignore the external costs they impose on third-parties. c. Because producers manufacture more goods than people can afford to buy. d. Because producers will receive an unequal distribution of profits.