As the equilibrium price falls in a perfectly competitive market, so do firms':
A. revenue and so do their profits.
B. average costs and so do their profits.
C. revenue, and their profits rise.
D. total costs, and their profits rise.
A. revenue and so do their profits.
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An increase in net foreign investment is possible through a decrease in national saving or a decrease in domestic investment
Indicate whether the statement is true or false
Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?
A) P5, Q1 B) P3, Q3 C) P2, Q1 D) P1, Q4
The demand schedule for a good: a. indicates the quantity that people will buy at the prevailing price
b. indicates the quantities that suppliers will sell at various market prices. c. indicates the quantities that will be purchased at alternative market prices. d. is determined primarily by the cost of producing the good.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and GDP Price Index rises. b. The quantity of real loanable funds per time period falls, and GDP Price Index falls. c. The quantity of real loanable funds per time period rises, and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.