If price equals average total cost, then total revenue
a. equals total cost
b. equals total fixed cost
c. equals total variable cost
d. is greater than total cost
e. equals marginal revenue
A
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A perfectly competitive market is in equilibrium and then demand decreases. The decrease in demand means the market price will ________ and eventually there will be ________
A) rise; entry by new firms B) fall; exit by existing firms C) fall; entry by new firms D) rise; exit by existing firms E) fall; neither entry nor exit because the market is perfectly competitive
A put option is a contract
A) that gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B) that gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C) in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D) that gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other nonwage aspects, the two firms offer the same job characteristics. We would expect:
A. wage rates at Ajax to be higher than at Acme. B. wage rates at Ajax to be lower than at Acme. C. wage rates at Ajax and Acme to be the same. D. workers at Ajax would have to be monitored more closely than those at Acme.
In the above figure, if the market price is $10, the firm
A. shuts down operations. B. produces 10 units. C. produces 12 units. D. produces 11 units.