Phrases such as "unbreakable bottle," "non-shrink," "extra spicy," and "nonstick surface" are generally used in advertisements for products sold in perfectly competitive markets
a. True
b. False
Indicate whether the statement is true or false
False
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The vertical distance between a firm's average total cost curve and its average variable cost curve is its
a. marginal cost b. sunk cost c. total variable cost d. total fixed cost e. average fixed cost
The slope of the budget constraint is determined by the
a. relative price of the goods measured on the axes. b. relative price of the goods measured on the axes and the consumer's income. c. endowment of productive resources. d. preferences of the consumer.
When a firm is experiencing economics of scale, long run
a. average total cost is minimized, b. average total cost is greater than long-run marginal cost, c. average total cost is less than long-run marginal cost, d. marginal cost is minimized. e. none of the above
When the government taxes a firm that generates external costs, the firm will produce
A. fewer units of output than before the tax was imposed in order to continue maximizing profits. B. more units of output than before the tax was imposed in order to continue maximizing profits. C. the same number of units of output as before the tax was imposed to continue maximizing profits. D. either more or fewer units of output than before the tax was imposed depending upon what happens to the profit-maximizing level of output.