Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's marginal revenue at a price of $70?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) $80 B) $40 C) $60 D) $50
C) $60
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An asset is liquid if:
A) its value does not change from day to day. B) it can be easily converted into cash without loss of value. C) it offers a positive rate of interest. D) its value is more likely to increase in future.
In long-run equilibrium, a firm in monopolistic competition makes
A) an economic profit, but the economic profit is less than it would be if the firm was a monopoly. B) an economic profit that is higher than what it would be if the firm was a monopoly. C) zero economic profit. D) an economic profit that is the same amount as it would be if the firm was a monopoly. E) an economic profit, an economic loss, or zero economic profit.
Which of the following is likely to lead to a decrease in the demand for tennis balls?
A. An increase in the price of tennis balls. B. An increase in the price of tennis racquets. C. An increase in the expected future price of tennis balls. D. An increase in the price of the rubber used to make tennis balls.
Use the following graph for a competitive market to answer the question below.
In a market with supply and demand curves as shown above, a price floor of $2.50 will result in
A. a black-market price greater than $2.50. B. a surplus of 10 units. C. a shortage of 10 units. D. no shortage or surplus.