The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,
A) the cost per mile increases.
B) the fall in the cost per mile becomes greater.
C) the cost per mile remains unchanged.
D) the cost per mile decreases.
E) the fall in the cost per mile becomes smaller.
E
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Why is the eurozone called a currency union?
What will be an ideal response?
In a perfectly competitive market, when the price is below the minimum average total cost for all firms:
A. accounting profits will be positive. B. firms will likely enter the market. C. the price will eventually rise once enough firms have left the market. D. economic profits will be equal to zero.
With price leadership,
a. price equals marginal cost b. the industry output is generally greater than a competitive industry c. prices are set by explicit collusion d. firms price discriminate among different classes of customers e. there is no formal agreement regarding prices
If a price ceiling is to be effective, it should be set
A. Above the equilibrium price, and it will create a market shortage. B. Below the equilibrium price, and it will create a market surplus. C. Below the equilibrium price, and it will create a market shortage. D. Above the equilibrium price, and it will create a market surplus.