A monopoly is most likely to emerge in a market when
a. the producers in the market have U-shaped average total cost curves.
b. the price elasticity of demand for the product is high.
c. the cost of entry and exit into the market is low.
d. economies of scale are large relative to market demand.
D
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In the above table, if this is a perfectly competitive firm and the market price of the product is $5 and the marginal factor cost of labor is $60, how many units of labor will the firm hire?
A) 2 B) 3 C) 4 D) 6
Which of the following statements is not true about a market system?
a. The market system provides an incentive to consumers to acquire purchasing ability. b. The market system magnifies the problem of scarcity of goods and services. c. The market system provides an incentive for allocating resources. d. The market system provides an incentive to improve the quality of goods produced. e. The market system provides everything everyone wants to consume.
Liam notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost (MC) is $8; if he produces 20 pairs of shoes per day, his MC is $15 . What is his AFC when output is 20 pairs of shoes per day?
a. $5 b. $7 c. $8 d. $15
If a monopolist can price discriminate among buyers, it will charge buyers with more elastic demands a higher price.
Answer the following statement true (T) or false (F)