A monopolistically competitive firm can increase its profits beyond the long-run equilibrium break-even level by deliberately lowering its price to force some of its competitors out of the market
Indicate whether the statement is true or false
FALSE
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Refer to Figure 13-4. What is the area that represents the total fixed cost of production?
A) P1bdP3 B) 0P1aQa C) P0adP3 D) That information cannot be determined from the graph.
The marginal cost of extraction of a nonrenewable resource increases with passage of time because:
a. the technology used in extraction depreciates in value. b. the price of the product that uses this resource decreases. c. the exchange rate in the international market appreciates. d. the tragedy of commons problem arises. e. the resource gradually becomes scarce.
A monopolist will increase output to the point where MR equals MC and not beyond.
Answer the following statement true (T) or false (F)
Tom is an organic gardener. For several years, he produced only for his own consumption, but this year he has sold his vegetables at a farmer's market. The vegetables Tom produces a. are not included in GDP, not for this year nor for previous years
b. are included in GDP for this year, but prior to this year the value of his vegetables was not included in GDP. c. would be included in GDP only if the vegetables were registered with the Department of Agriculture. d. are not part of GDP, since vegetables are not a good included in GDP.