Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If S3 is the market supply curve, then in the short run, the profit-maximizing level of output for a single firm in this market is ________ gallons per week.
A. 8000
B. 200
C. 400
D. 0
Answer: A
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If the demand for its product is inelastic, a monopoly's
A) total revenue increases when the firm lowers its price. B) total revenue is unchanged when the firm lowers its price. C) marginal revenue is negative. D) marginal revenue is equal to zero.
A bond that pays no annual interest (or coupons) and has a face value at maturity will fetch a price today that is equal to the:
A. Future value of its face value B. Number of years in the life of the bond times its face value C. Present value of the number of years in the life of the bond times its face value D. Present value of its face value
When the price of a bond is ________ the equilibrium price, there is an excess demand for bonds and price will ________
A) above; rise B) above; fall C) below; fall D) below; rise
Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price of another good changes
a. True b. False Indicate whether the statement is true or false