At the equilibrium price, Question 21 options:
A. the quantity demanded equals supply.
B. the government is setting the price.
C. the quantity supplied equals demand.
D. the quantity demanded equals the quantity supplied.
E. there can be either a small surplus or a small shortage.
D. the quantity demanded equals the quantity supplied.
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As a rule, as a consumer acquires more and more of a good, the marginal utility declines.
Answer the following statement true (T) or false (F)
If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will
A) leave the industry. B) decrease its output. C) increase its output. D) not change its behavior.
A cartel is defined to be
A) any oligopolistic industry with fewer than 4 firms. B) a form of oligopoly in which firms agree to sell at different prices like in monopolistic competition. C) a form of oligopoly in which firms formally agree to establish a common strategy, often a common price, in effect acting like a monopoly. D) a form of oligopoly in which firms agree to compete with each other on an equal basis.
Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. AC rise by $1.50 b. AC rise by $1.00 c. AC fall by $1.50 d. AC fall by $1.00