The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm has excess capacity of
A) 4 units.
B) 8 units.
C) 16 units.
D) $10.
B
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Ronald Coase's study, "The Nature of the Firm," argued that firms are formed to take advantage of situations in which hierarchies are more efficient than markets
a. True b. False
Elasticities are often _______ in the short run than in the long run.
a. higher b. lower c. equal d. congruent
If a movie theater is going to gain by charging students a dollar less than other customers,
a. the demand of students must be more elastic than that of other customers. b. the demand of students must be less elastic than that of other customers. c. students must have higher incomes than other customers. d. other customers must enjoy movies more than students.
In a derivative transaction:
A. the dollar amount of the transaction increases as the contract date approaches. B. the risk is less than if actually purchasing the underlying asset. C. there is always a futures contract. D. what one person gains is what the other person loses.