In short-run equilibrium, a competitive price-taker firm
a. may earn a profit or a loss.
b. always earns a profit.
c. never earns a profit.
d. earns a profit only if the firm has no fixed cost.
A
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The table below shows the weekly demand for hamburgers in a market where there are just three buyers.PriceQuantity Demanded by Buyer 1Quantity Demanded by Buyer 2Quantity Demanded by Buyer 3$6746597841510123211516Refer to the table. If the price of a hamburger decreases from $5 to $3, then the weekly market quantity of hamburgers demanded will
A. increase from 120 to 156. B. increase from 24 to 52. C. increase from 29 to 55. D. decrease from 52 to 24.
Under what circumstances would the GDP deflator be less than 100 after the base year?
A) The GDP deflator will be less than 100 if there has been deflation relative to the base year. B) There are no circumstances under which the GDP deflator could be less than 100. C) The GDP deflator will be less than 100 if there has been inflation relative to the base year. D) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year.
If the price of chewing gum is represented by P in equation P = 25 - 0.5 QD, then the corresponding quantity of chewing gum demanded is represented by the demand equation
A) QD = 2P - 0.5. B) QD = 0.5P + 25. C) QD = -5 + 10P. D) QD = 50 -2P.
If a firm is using optimal input proportions, it is minimizing its costs.
Answer the following statement true (T) or false (F)