Illustrate the cost curves and average revenue (demand) curve for the perfectly competitive firm in long-run equilibrium.
What will be an ideal response?
The illustration should look like Figure 10-9(a) in the text.
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China has few state-owned enterprises left in its economy
Indicate whether the statement is true or false
Refer to above Table 2-1. What is the level of Corporate Profits?
A) 260 B) 180 C) 270 D) 170
Fresh Flour makes baking flour and sells its flour in 4 pound sacks or bags. The managers of Fresh Flour are considering whether the firm should make or buy the flour sacks. To make the sacks, Fresh Flour needs a $500,000 piece of equipment. Using this equipment, Fresh Flour can make a flour sack for $0.01 and, for simplicity, ignore taxes and assume that the $0.01 cost includes depreciation and
all other costs. Fresh Flour would finance the $500,000 investment using its own funds and, if it purchased the flour sacks from another firm, it would pay $0.19 a flour sack. The life span of the equipment is 10 years and it has no salvage value at the end of the ten years. If the discount rate is 6 percent and the firm needs 400,000 flour sacks a year, what is the present value of the equipment? A) $623,850 B) $459,250 C) $500,962 D) $529,926
Monopolistic competition has at least one similarity to perfect competition: firms are free to enter and leave the industry.
Answer the following statement true (T) or false (F)