Gasoline stations carrying the same fuel brand (e.g., Chevron) are able to charge different prices in San Francisco because:
A. location is a source for product differentiation.
B. gasoline stations are perfect price discriminators.
C. gasoline station operators form a cartel to act as a monopoly.
D. fuel quality varies across stores.
Answer: A
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Firms are willing to change the aggregate quantity of output supplied based on price in:
A. both the short and long run. B. the short run only. C. the long run only. D. Price does not affect the quantity that firms supply.
A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000. The prevailing market price is $48. Assuming that this firm continues to produce in the long run, what happens to output level in the long
run? A) The firm's output falls. B) The firm's output increases. C) The firm produces the same output level. D) There is insufficient information to answer the question.
Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor increase, its isocost line
A. rotates outward on the X-intercept. B. shifts in parallel to the original isocost line. C. rotates outward on the Y-intercept. D. shifts out parallel to the original isocost line.
The productivity slowdown experience in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries
Indicate whether the statement is true or false