Firm A charges $8.50 for each unit of Good X. If the average total cost of producing 1,000 units of Good X is $12 and the market for Good X is monopolistically competitive, Firm A ________ by producing 1,000 units of Good X
A) earns a profit of $3,500
B) earns a profit of $1,000
C) incurs a loss of $1,000
D) incurs a loss of $3,500
D
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Refer to Figure 1-6. Calculate the area of the trapezoid X
A) $361 B) $450 C) $1,020 D) $1,140
Under oligopoly:
A. there are many sellers in the industry. B. the demand for each firm's output is perfectly elastic. C. there are only a few sellers in the industry. D. there are no barriers to entry.
The marginal revenue curve of a perfectly price-discriminating monopolist
a. coincides with the marginal cost curve b. lies below the market demand curve c. coincides with the market demand curve d. is a horizontal line through the midpoint of the market demand curve e. does not exist
Which of the following basic economic concepts most clearly provides the foundation for the long-run aggregate supply curve?
a. the law of demand b. the production possibilities curve c. the law of comparative advantage d. the law of diminishing marginal utility