Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Mega Corp: TC = 5,000 + 100QBig Inc: TC = 4,000 + 200QWhen each firm produces 8 units, ________ has a lower total cost, and when each firm produces 12 units, ________ has a lower total cost.
A. Mega Corp; Big Inc
B. Big Inc; Mega Corp
C. Big Inc; Big Inc
D. Mega Corp; Mega Corp
Answer: B
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Natural gas is a natural monopoly. The figure above shows the market for natural gas in the city of Lucknow. When an average cost price rule regulation is imposed, the price per household per month is ________
A) $20 and 30,000 households are served B) $40 and 40,000 households are served C) $40 and 30,000 households are served D) $60 and 20,000 households are served
In the long run, in a monopolistically competitive market, price will be
A) equal to MR. B) equal to MC. C) greater ATC. D) equal to ATC.
The interest rate is determined by
a. government pronouncements. b. market forces of supply and demand. c. banks and lenders. d. managers of large corporations.
Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. The movement from curve (a) to curve (b) suggests:
A. a movement from unemployment to full employment. B. a decline in the total output of this society. C. an improvement in consumer goods technology but not in capital goods technology. D. an improvement in capital goods technology but not in consumer goods technology.