Refer to the graph shown. A firm that produces 900 units of output using the plant size associated with SATC3 minimizes:
A. both long-run and short-run average total cost.
B. neither long-run nor short-run average total cost.
C. long-run average total cost only.
D. short-run average total cost only.
Answer: A
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In perfect competition, each firm ________
A) can influence the price that it charges B) produces as much as it can C) is a price taker D) faces a perfectly inelastic demand for its product
If a surplus exists in a market, then we know that the actual price is
a. above the equilibrium price, and quantity supplied is greater than quantity demanded. b. above the equilibrium price, and quantity demanded is greater than quantity supplied. c. below the equilibrium price, and quantity demanded is greater than quantity supplied. d. below the equilibrium price, and quantity supplied is greater than quantity demanded.
The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist.
The socially optimal level of output is:
A. 10 units per day. B. 4 units per day. C. 5 units per day. D. 8 units per day.
Economics is a part of the
A) social sciences. B) natural sciences. C) biological sciences. D) organizational sciences.