Average costs curves initially fall
a. Due to declining average fixed costs
b. Due to rising average fixed costs
c. Due to declining marginal costs
d. Due to rising marginal costs
a
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If the economy's real GDP declines for at least one-half year, it's in a
a. depression b. recession c. downturn d. recovery e. limited prosperity
An example of a microeconomic decision is a situation in which
A. a government contemplates buying foreign currencies in an effort to influence exchange rates and the country's demand for goods and services. B. a firm evaluates how much to reduce the price of its product in an effort to influence sales and boost its profits. C. a central bank considers how much to increase the money supply during the coming month in an effort to constrain the rate of inflation. D. Congress and the president seek to reach a compromise on how much to increase government spending in an effort to influence national expenditures.
Which firm in Figure 26.5 is using marginal cost pricing?
A. Firm C only. B. Firms B and D only. C. Firm B only. D. All of the firms are using marginal cost pricing.
Suppose two Bertrand price competitors have different constant marginal costs. In any simultaneous move Nash equilibrium, only the lower cost firm will produce.
Answer the following statement true (T) or false (F)