Which of the following business decisions will be made by firms that are price searchers but not those that are price takers?
a. What combination of resources should be used to produce a product that is supplied?
b. What output should be produced?
c. What price should be charged?
d. What legal structure of business organization (for example, a proprietorship or corporation) should be used?
C
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What does the law of diminishing returns imply for the shape of the marginal cost curve?
What will be an ideal response?
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's total profit?
A. $11,200 B. $13,200 D. $12,700
Why might a union find that attaining the goal of employing all its members and the goal of maximizing total union wage receipts to be incompatible objectives?
What will be an ideal response?
In a competitive industry
a. firms have no cost advantages b. some firms have cost advantages, while others do not c. all the firms have highly differentiated products d. Consumers have strong preferences across brands