A competitive price-taker firm's marginal cost curve is regarded as its supply curve because
a. the position of the marginal cost curve determines the price for which the firm should sell its product.
b. among the various cost curves, the marginal cost curve is the only one that slopes upward.
c. the marginal cost curve determines the quantity of output the firm is willing to supply at alternative prices.
d. the firm is aware that marginal revenue must exceed marginal cost in order for profit to be maximized.
C
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Answer the following statement(s) true (T) or false (F)
1. In the absence of transactions costs, changes in property rights have no effect on economic efficiency. 2. In the absence of transactions costs, changes in property rights have no effect on the distribution of income. 3. Changes in property rights will not affect the allocation of resources as long as transactions costs are zero and the subsequent effects on market demand are negligible. 4. The weak Coase theorem is true when reallocation of property rights have negligible income effects . 5. According to the Coase Theorem, in the absence of transactions costs, recipients of an external benefit can be expected to offer a bribe in exchange for greater production.
In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to
A) 2.50. B) 1.63. C) 0.40. D) 0.62. E) 1.00.
For a natural monopoly, if price is set equal to marginal cost then the firm incurs an economic loss
Indicate whether the statement is true or false
Describe the difference in market structure between monopoly and oligopoly
What will be an ideal response?