For a perfectly competitive rancher in Wyoming, if the price does not change, an economic profit could turn into an economic loss if the
A) average total cost curve shifts downward.
B) average total cost curve does not change.
C) average total cost curve shifts upward.
D) marginal cost curve shifts downward.
E) average fixed cost decreases.
C
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A monopolist maximizes profits by finding
A) the rate of output where marginal revenue equals marginal cost. B) the rate of output where price equals marginal cost. C) the price where price exceeds marginal revenue by that largest amount. D) the price where average revenue and marginal cost are equal.
The opportunity cost of attending a concert would include:
a. the price you paid for the ticket and the value of your time. b. the price you paid for the ticket, but not the value of your time. c. the value of your time, but not the price you paid for the ticket. d. neither the price of the ticket nor the value of your time.
The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is likely to increase the probability that:
A. Bagel World cheats. B. both firms abide. C. Bagels 'R' Us cheats. D. both firms cheat.
"If production of a good creates an external cost, then, when production is such that the marginal private costs are equal to the marginal private benefits, the market outcome will be inefficient"
Explain whether this assertion is correct or incorrect.