Graphically, a firm's total cost is equal to the area of the:
a. triangle formed under the demand curve.
b. rectangle formed under the demand curve at a given price and quantity combination.
c. rectangle formed under the average-total-cost curve at a given ATC and quantity combination.
d. triangle formed by a line segment between the demand and average-total-cost curves.
e. triangle formed by a line segment between the horizontal axis and the average-total-cost curves.
c
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In an oligopoly with two firms, one firm's share of the market is 70 percent. The Herfindahl-Hirschman Index is ________
A) 4,900 B) 0.7 C) 5,800 D) 100
Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. U.S. demand for foreign exchange, in general, and British pounds, in particular, will increase. b. U.S. demand for foreign exchange, in general, and British pounds, in particular, will decrease. c. U.S. demand for British pounds will increase, but the demand for foreign exchange will probably decrease. d. U.S. demand for British pounds will decrease, but the demand for foreign exchange will probably increase. e. There is no effect on foreign exchange.
A monopolist can choose a price & quantity combination that is above the demand schedule
a. True. b. False.
As a general rule, free trade:
A. acts to equalize the supply of and demand for factors of production across countries. B. increases the supply of factors that are domestically scarce. C. causes factor prices to converge across countries. D. All of these are true.