If the firm in the given graph were to produce Q2 and charge P2, then:
These are the cost and revenue curves associated with a firm.
A. economic profit would be negative.
B. deadweight loss would be positive.
C. producer surplus would be zero.
D. profits would be maximized.
A. economic profit would be negative.
You might also like to view...
Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price decreases from $9 to $7 is
A. -1.16. B. -2.27. C. -.63. D. -1.60.
Suppose the extra cost to a pet store of advertising one additional day each week in the local newspaper is $450
Then, the pet store should advertize that one additional day each week if doing so brings in additional revenue of $450 or more each week. Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) Price-fixing is illegal under Section 1 of the Sherman Act. 2) Monopolization is illegal under Section 1 of the Sherman Act. 3) The U.S. Justice Department, the Federal Trade Commission, state attorneys general, and injured private parties can independently file charges against firms under the Sherman Act. 4) Anticompetitive mergers are illegal under provisions of the Clayton Act (as amended).
The process of entry and exit into a monopolistically competitive market continues until:
A. price is equal to average total cost. B. long-run equilibrium is reached. C. profits are zero. D. All of these statements are true.