Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. Assume the market price is $3 and the firm is currently producing 100 units. If the firm produces zero units in the short run, it will reduce its economic loss by:
A. $300.
B. $600.
C. $900.
D. $1,200.
Answer: A
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Refer to Table 8-16. Given the information above, what can we say has happened in the economy from 2015 to 2016?
A) The price level has risen. B) The price level has fallen. C) The price level has remained constant. D) Not enough information is available to determine what has happened to prices.
If, after she buys a car with air bags, Maria Andretti starts to drive recklessly, that would be an illustration of: a. the moral hazard problem
b. the free rider problem. c. the adverse selection problem. d. the "lemon" problem.
A group of firms that act in unison to maximize collective profits is called a
a. monopolistically competitive industry. b. monopoly. c. cartel. d. Nash equilibrium market.
An oligopoly would tend to restrict output and drive up price if
a. barriers to entering the industry are negligible. b. firms engage in informative advertising. c. firms produce a standardized product. d. firms collude and behave like a monopoly.