Refer to the scenario above. If both firms operate to maximize profits, the:
A) total cost of production is minimized.
B) total combined profits are minimized.
C) marginal cost of both firms are minimized.
D) marginal cost of both firms are maximized.
A
You might also like to view...
The type of unemployment that occurs because of a recession is called
a. frictional unemployment. b. seasonal unemployment. c. natural unemployment. d. cyclical unemployment.
Would a shift in demand have a greater effect on the percentage change in equilibrium quantity for a straight-line supply curve that intersects the quantity axis or the price axis?
A. Price axis because supply will be more elastic. B. Quantity axis because supply will be less elastic. C. Quantity axis because supply will be more elastic. D. Price axis because supply will be less elastic. References
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria,
what price would it charge per household per month? A. $5.00 B. $27.50 C. $30.00 D. $55.00
A maximum price, set by the government, that sellers may charge for a good is known as
A. a price floor. B. a price ceiling. C. a price rationing mechanism. D. a subsidy.