Entry of a second firm will result in a downward shift in the ATC curve.
Answer the following statement true (T) or false (F)
False
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A single-price monopoly will set its price according to which of the following rules?
A) P = MR and MR = MC B) P = MC where the MC curve crosses the demand curve C) P = MR where the MR curve crosses the demand curve D) None of the above answers is correct.
If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
A. more than $10. B. less than $10. C. $10. D. $500.
A student receives a five-year loan to pay for a $2,000 used car. The lender and the student agree to an 8% interest rate on a fixed-rate loan. Expected inflation was estimated to equal 2.5%, but unexpectedly decreases to 2%. Which of the following is true?
A. The real interest rate decreased. B. Both the student and the lender benefit. C. The lender is made worst off because his real return on the car loan is lower. D. The student is made worse off because her real cost of borrowing is higher.
A firm can be the only firm in an industry and still not be a monopoly if
A) the firm is not large. B) the firm is not making economic profits. C) the firm produces a good similar to a good in another industry. D) the firm produces a good that is not considered a necessity.