In the above figure, point C is
A. less preferred than point G.
B. preferred to points A and B.
C. preferred to points G, A, and B.
D. less preferred than point H.
Answer: B
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The firms in a market have decided not to compete with one another and have agreed to limit output and raise price
A) This practice is known as concentrating and is legal in the United States and Canada. B) This practice is known as collusion and is illegal in the United States. C) In this way firms take advantage of economies of scale. D) This is an effective barrier to entry, but is illegal in the United States.
A firm will not shut down in the long run as long as the firm's revenue:
A. is larger than the firm's variable cost. B. is greater than the firm's marginal cost. C. is greater than the fixed cost. D. is less than the total cost.
The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes:
A) price and the profits of firms in the market to increase. B) price and the profits of firms in the market to decrease. C) price to increase and the profits of firms in the market to decrease. D) price to decrease and the profits of firms in the market to increase.
If the inverse demand function for a monopoly's product is p = 100 - 2Q, then the firm's marginal revenue function is
A) -2. B) 100 - 4Q. C) 200 - 4Q. D) 200 - 2Q.