Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
If the manufacturer of the new drug chose to increase its price from $70 to $75, consumers would buy ________ doses, and have ________ total expenditures.
A. more; higher
B. more; lower
C. fewer; higher
D. fewer; lower
Answer: D
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When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale
Indicate whether the statement is true or false
Assuming Cournot behavior, what happens to the market output, the price of the output, and each firm's output as the number of firms in a market increases?
What will be an ideal response?
The World Bank is an international agency that lends money to individual countries for projects that promote economic development.
Answer the following statement true (T) or false (F)
Refer to the diagram. At the profit-maximizing level of output, the firm will realize:
A. an economic profit of ABHJ.
B. an economic profit of ACGJ.
C. a loss of GH per unit.
D. a loss of JH per unit.