In a perfectly competitive market buyers want to buy 20,000 units and sellers want to sell 20,000 units of a product when the price is $50 per unit. ABC Corporation, one seller in this market,
A. will sell a fixed number of units regardless of how the price changes.
B. faces a downward-sloping demand curve for its product.
C. will maximize profit by selling at a price less than $50.
D. faces a perfectly elastic demand curve at a price of $50.
Answer: D
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Which of the following is not generally true about a profit-maximizing monopolist? a. The monopolist faces a perfectly elastic demand curve
b. The monopolist can potentially continue to earn economic profits in the long run. c. The monopolist charges a price that exceeds marginal cost. d. The monopolist chooses output where marginal revenue equals marginal cost.
Give a complete and concise definition of each of the following terms
a. deliberately erected entry barriers b. inefficiency of monopoly c. price discrimination d. profit-maximizing equilibrium for a monopolist
Refer to the graph shown. The maximum possible total profit this monopolist that charges only one price can earn is:
A. $240. B. $0. C. $120. D. $60.
When you deposit $200 in your savings account with the objective of withdrawing it later to buy a video game that is about to be offered in the market in the near future, then the $200 is serving which function?
A. Store of wealth B. Medium of exchange C. Store of real assets D. Unit of account