The short-run market supply curve in a price-taker industry equals the horizontal sum of the individual firm's
a. MC curves above AVC.
b. AVC curves above marginal revenue.
c. MC curves above ATC.
d. MC curves between AVC and ATC.
A
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Answer the following statements true (T) or false (F)
1) The annual interest rate that is used to calculate the discount factor is called the discount rate. 2) The longer the period of time until receiving a future amount of money, the more interest that can be earned, so the larger the discount factor. 3) All else equal, the present value of a sum of money will be smaller the larger the interest rate. 4) An annuity factor can be used when payments change each year. 5) All else equal, when a manager is choosing between two payment plans, a profit-maximizing manager should chose the plan with the lowest present value.
Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $45.00. What is the monopoly's profit?
A) -$1000 B) $4500 C) $0 D) $3500
The message that market economies efficiently generate information through markets is associated with:
a. Mises and Hayek b. Samuelson c. Kornai d. Olson e. Keynes
Taxes create deadweight losses because they
a. reduce costs for firms. b. distort incentives. c. cause prices to decrease. d. create revenue for the government.