Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. How many units of output will be produced by a firm operating in this market with a MC = 130Q?
A. 5
B. 0.70
C. 2
D. It is impossible to answer with the information given
Answer: C
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The largest share of the typical American family budget goes to:
a. goods b. health care c. housing d. transportation
If a firm that produces honey is facing elastic demand, then the firm would decrease price to increase revenue
a. True b. False Indicate whether the statement is true or false
A Herfindahl-Hirschman Index of 10,000 would mean there is (are) _____ firm(s) in the industry.
Fill in the blank(s) with the appropriate word(s).
In long-run perfectly competitive equilibrium, which of the following is false?
A) There is efficient, low-cost production at the minimum efficient scale. B) Economic surplus is maximized. C) Firms earn economic profit. D) Economies of scale are exhausted.