Suppose there are 200 firms in a perfectly competitive market and each maximizes profit at 120 units of output when market price is $5.00 per unit. One of the points on the market supply curve must be at:
A. Price = $1,000 and Quantity supplied = 320.
B. Price = $5 and Quantity supplied = 24,000.
C. Price = $1,000 and Quantity supplied = 24,000.
D. Price = $5 and Quantity supplied = 320.
Answer: B
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In the long run, a firm in monopolistic competition will produce
A) where average total cost is minimized. B) where price equals average total cost but average total cost is not at its minimum. C) zero output. D) any possible amount of output. E) where price equals marginal cost.
The OASDI trust fund is projected to sink below zero in ¬¬_____
a. 2012 b. 2021 c. 2033 d. 2045
The main reason(s) monopolies can earn positive profits for a while is(are)
a. assets cannot quickly move in and out of the industry when demand fluctuates b. an increase in demand does not lead to entry of firms to absorb the extra demand c. both A&B d. none of the above