In a natural monopoly, the long-run average cost curve declines and therefore average cost is lower when there is only one seller
a. True
b. False
Indicate whether the statement is true or false
True
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In perfect competition, what is the relationship between the demand for the firm's output and the market demand?
What will be an ideal response?
Since its inception in 1913, there have been many revisions to the income tax code.
A. True B. False C. Uncertain
Oil producers expect that oil prices next year will be higher than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward. B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward. C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices. D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.
Consumer surplus is
A. the difference between current market price and full costs of production for the firm. B. the difference between the maximum a person is willing to pay and full costs of productions for the firm. C. current market price. D. the difference between the maximum a person is willing to pay and current market price.