A firm in a competitive price-searcher market can raise its price without losing all of its customers. This is a result of
a. low entry barriers.
b. a perfectly elastic market demand.
c. the small number of firms in the market.
d. product differentiation.
D
You might also like to view...
Firms in monopolistic competition determine the profit-maximizing level of output by producing
A) the same output level as rivals do. B) where average total cost is minimized. C) at the point of minimum average fixed cost. D) where marginal revenue equals marginal cost. E) where price equals average total cost.
Alice, Bob, and Cody live in Wesland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alice 30,000 6,000 Bob 50,000 7,500 Cody 100,000 12,000 The income tax in Wesland is
A) proportional. B) regressive. C) flat-rate. D) progressive.
In testing whether each individual independent variables (Xs) in a multiple regression equation is statistically significant in explaining the dependent variable (Y), one uses the:
a. F-test b. Durbin-Watson test c. t-test d. z-test e. none of the above
The average fixed cost curve always has a negative slope because:
a. marginal costs are below average fixed costs. b. average variable costs exceed marginal costs. c. total fixed costs always decrease. d. total fixed costs do not change as output increases.