In a constant cost industry, the cost curves of individual firms will shift upward as the industry output expands
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is $1,200 for a ton of turnips, the firm is
A) making an economic profit. B) making zero economic profit. C) incurring an economic loss. D) More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss.
The social cost attached to monopolies is reflected by the fact that
A) monopolies produce more output than consumers desire to buy. B) consumers pay prices that exceed the marginal cost of production. C) the demand for a monopolist's product is always lower than the demand for the products of perfectly competitive firms. D) consumers are always willing to pay lower prices for a monopolist's product than for the products of perfectly competitive firms.
Requiring the buyer of one good to purchase another good as well is termed
a. predatory pricing. b. price discrimination. c. tying contracts. d. exclusive dealing.
The terms of trade is defined as:
a. the quantity of inputs sacrificed to produce each unit of a good. b. the quantity of one good that is exchanged for a quantity of another good. c. the ratio of the total cost of production of individual traders. d. the marginal cost of producing one good as a percentage of the marginal cost of another good. e. the ratio of total exports of a nation to its total production.