Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a higher long-run price, we know that
A) this is a decreasing-cost industry.
B) this is an increasing-cost industry.
C) some firms will be losing money in the long run.
D) after further adjustments, price will fall to its original level.
Answer: A
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If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the deadweight loss from monopoly equals
A) $21. B) $441. C) $882. D) $1,764.
The Federal Reserve:
A. is the central bank of the United States. B. sets the budget for the U.S. government. C. is appointed by the president of the United States. D. is responsible for funding federal spending.
A monopolist produces where P = MC = MR
a. True b. False Indicate whether the statement is true or false
If a monopolist is producing at an output rate at which P = ATC, then
A. it is minimizing its losses. B. its economic profit will be zero. C. its economic profit will be positive. D. it is maximizing its profits.