If a multi-plant firm with market power is maximizing its profits, the price it charges per unit of its product will ________ its ________.
A) equal; overall average cost
B) equal; overall marginal cost
C) exceed; demand
D) exceed; overall marginal cost
D) exceed; overall marginal cost
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A person who is, all else equal, more willing to throw away a $20 shirt than a $200 shirt, even if both are worn out, is:
A. dynamically inconsistent. B. dynamically consistent. C. demonstrating sunk cost fallacy. D. demonstrating pre-commitment.
The global pattern of inequality has:
A. remained surprisingly unchanged for the past several decades. B. not changed since the Great Depression redefined inequality for the world. C. changed significantly after each World War. D. been changing in recent decades.
Deciding how a society's products are distributed among its citizens answers the economic question of:
A. "Who consumes the products produced?" B. "What products will be produced?" C. "Where will the products be consumed?" D. "How will the products be produced?"
If the price elasticity of demand is 1, demand is:
A. upward sloping. B. inelastic. C. unit elastic. D. elastic.