Suppose Thelma and Louise both sell fried green tomatoes in a perfectly competitive market. If Louise increases her output,
a. Thelma must reduce output
b. the price Thelma can charge falls
c. the price Thelma can charge rises
d. the price Thelma can charge is unaffected
e. Thelma's profits must fall
D
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Which statement is true?
A. Mass production can take place without mass consumption. B. Mass consumption can take place without mass production. C. Mass production can take place without mass consumption and mass consumption can take place without mass production. D. Mass production cannot take place without mass consumption, nor can mass consumption take place without mass production.
Answer the following statement(s) true (T) or false (F)
1. The marginal cost of producing tea can be measured in dollars per pound of tea. 2. A firm's revenue can be calculated from its demand curve using the formula "price times quantity." 3. Fixed costs have no effect on a firm's profit. 4. Profits will be positive as long as marginal revenue is greater than marginal cost. 5. If marginal cost exceeds marginal revenue, then a reduction in output will create higher profits.
How does the federal government finance a budget deficit?
A) It borrows funds by selling Treasury bonds. B) It cuts spending on entitlement programs. C) It redeems its IOUs. D) It purchases U.S. Treasury bonds.
The larger the fraction of an investment financed by borrowing,
A) the smaller the potential return and potential loss on that investment. B) the greater the potential return and the smaller the potential loss on that investment. C) the smaller the potential return and the greater the potential loss on that investment. D) the greater the potential return and potential loss on that investment.