The monopolist's cost curves differ from those of a perfectly competitive firm in that the:
A. average variable cost in no longer equal to marginal cost.
B. The cost curves are the same for a firm regardless of market structure.
C. marginal cost curve is downward sloping instead of flat.
D. average total cost curve is not necessarily minimized where it crosses marginal cost.
Answer: B
You might also like to view...
The figure above shows Sam's budget line. Sam's budget line shows
A) which combinations of gasoline and coffee Sam can afford. B) which combinations of gasoline and coffee Sam is planning to purchase. C) whether or not Sam thinks gasoline and coffee are worth their prices. D) whether or not Sam currently has enough gasoline and enough coffee.
Which of the following situations is clearly and unambiguously descriptive of a positive externality?
A. Jack feels better after his daily walk. B. Joriel studies harder than anyone in his class. C. Professor Gomez gave an unannounced quiz to her history class yesterday. D. The President of the United States yesterday signed a legislative act that is very popular in the country. E. none of the above
If policy makers estimate the natural rate of unemployment incorrectly, _____
a. their policies will cause deflation in the long run b. their policies will cause even more unemployment in the long run c. the economy will stay below its potential GDP in the long run d. the economy will tend toward the level of unemployment the policy makers believe is correct e. policies that appear to be successful in the short run will lead to further economic problems
The labor market for ultrasound technicians in Cleveland is initially in equilibrium. Which of the following would lead to a lower wage rate and higher employment in that market?
a. a drop in demand for diagnostic services at Cleveland hospitals b. a drop in the price of ultrasound equipment c. an increase in the length of training required for ultrasound technicians d. a shift in potential workers' tastes away from hospital and clinical work e. a wage decrease for ultrasound technicians in nearby cities