Technology reduces the average cost of production, so in the long run
i. perfectly competitive firms produce at a lower average cost.
ii. the market price of the good falls.
iii. firms with older plants either exit the market or adopt the new technology.
A) i only.
B) i and ii.
C) iii only.
D) i and iii.
E) i, ii, and iii.
E
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If the market in the figure above is a profit-maximizing single-price monopoly, the deadweight loss is the area ________
A) ABH B) BFGH C) ACG D) BCD E) ACE
A government-inhibited good is one that
A) the political process has determined is socially undesirable. B) the political process has determined is socially desirable. C) freely competitive markets have determined is socially desirable. D) we want to encourage the consumption of.
Refer to Figure 23.1 for a perfectly competitive firm. This firm should shut down in the short run if the market price is below
A. $20. B. $10. C. $5. D. $15.
The demand for gasoline is likely to be more inelastic than the demand for sushi.
Answer the following statement true (T) or false (F)