A dominant firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms.
B) the vertical difference between the market demand curve and the supply curve of the fringe firms.
C) the demand curve left for the fringe firms after the dominant firm has determined an output level.
D) None of the above.
A
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Cruz earned $500 a week in 2003, the base year; by 2009 she was earning $700. If the consumer price index was 150 in 2009, how much were Ms. Cruz's real wages that year, and by what percentage had they changed?
What will be an ideal response?
In the production of goods and services, trade-offs exist because
A. society has only a limited amount of productive resources. B. human wants and needs are limited at a particular point in time. C. we have abundant resources to choose from. D. not all production is efficient.
Which of the following statements is not true in a perfectly competitive industry in long-run equilibrium?
A. A profit-maximizing firm may produce any output level at which P < LRAC. B. Every firm produces at an output level at which MC = LRAC. C. There is no entry or exit from the industry. D. No firm earns an economic profit.
Individuals want nonexcludable public good X, but the market does not provide it because of the free rider problem. Government overcomes the free rider problem by ______________ individuals and then either producing good X itself or paying someone to produce it
A) forcing individuals to work longer hours B) taxing C) surveying D) subsidizing E) none of the above