If a price-taker industry is in long-run equilibrium, the market price in the industry will be just sufficient to cover the firm's average
a. total costs.
b. fixed costs.
c. variable costs.
d. variable costs plus a 10 percent accounting profit.
A
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An example of a bilateral monopoly would be when a union
A) bargains with many different employers. B) deals directly with the final consumers. C) bargains with a monopoly. D) bargains with a monopsony.
A free rider is a person who
a. will only purchase a product on sale. b. receives the benefit of a good but avoids paying for it. c. can produce a good at no cost. d. rides public transit regularly.
The quantity supplied of a particular good is the amount of the good that
A) households are willing to consume at each particular price. B) firms will actually end up buying at a particular price during a given time period. C) firms are willing to sell at each price during a particular time period. D) households want firms to sell at each price during a particular time period.
When no property rights exist
A. no one has an economic incentive to care for common property, and an externality may well occur. B. externalities will be internalized by voluntary arrangements among a small group of parties. C. society will produce beyond the production possibilities frontier, but the allocation of resources is not apt to be optimal. D. there will be no production.