When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should:
A) continue to produce the level of output at which marginal revenue equals marginal cost.
B) increase output to minimize its losses.
C) reduce output to the level at which price equals average variable cost to minimize its losses.
D) shutdown to minimize its losses.
A
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In order to practice third degree price discrimination all of the following conditions must hold except that the firm
a. has monopoly power. b. is able to exercise control over resales. c. is willing to sell more to each customer at lower prices. d. charges a lower price to groups with more elastic demand.
The FOMC is the agency that insures deposits up to $250,000
Indicate whether the statement is true or false
If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:
A. "Raw" land B. Building site C. Developed land D. Property infrastructure
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A. Consumer surplus is eliminated, and an equal-sized deadweight loss is created. B. Consumer surplus increases, and the previously existing deadweight loss decreases. C. Consumer surplus increases, and the previously existing deadweight loss increases. D. Consumer surplus decreases in size, and a deadweight loss is created.