Consider the perfectly competitive firm in the above figure. The shutdown point occurs at a price of
A) $11.00.
B) $12.00.
C) $16.00.
D) $22.00.
A
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Which of the following firms is not able to practice price discrimination?
A) commercial airlines B) the largest wheat farmer in Nebraska C) land-line telephone companies D) movie theaters
In the FOMC's "Statement on Long-Run Goals and Monetary Policy Strategy,"the FOMC agreed to a single numerical value of the inflation objective, 2% on the ________
A) PCE deflator B) GDP deflator C) CPI D) PPI
A common theme among examples of market failure is
a. the good being provided harms society in some systematic way. b. some item of value does not have an owner with the legal authority to control it. c. cost-benefit analysis will show that private markets should provide the goods and services. d. government intervention decreases the social benefits.
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, the typical dry-cleaning firm has a minimum long-run average cost of cleaning a business suit equal to ________ and the typical dry cleaning firm earns economic profit equal to
________. A. $2, $2.50 per suit cleaned B. $3, $1.50 per suit cleaned C. $4.50, $0 D. $2, $0