The market structure in which the largest quantity of output is sold at the minimum possible price is:
a. monopoly.
b. perfect competition.
c. oligopoly.
d. monopolistic competition.
e. monopsony.
b
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If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm. B. the firm's production process exhibits economies of scale. C. the firm's marginal revenue from selling an additional unit of output is less than price. D. it is a perfectly competitive firm.
Refer to the figure above. Given the consumer's budget constraint, the consumption bundle that maximizes his satisfaction consists of:
A) 0 shirts and 40 pairs of trousers. B) 10 shirts and 30 pairs of trousers. C) 20 shirts and 15 pairs of trousers. D) 35 shirts and 10 pairs of trousers.
"When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
In the short run, the firm's average fixed costs
a. always increase as output increases. b. always decline as output increases. c. equal zero. d. remain constant as output expands.