Assume a firm in a competitive industry is producing 800 units of output, and it sells each unit for $6 . Its average total cost is $4 . Its profit is
a. -$1,600.
b. $1,600.
c. $3,200.
d. $8,000.
b
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Credit cards are i. a generally accepted form of payment and therefore part of M1. ii. included in M1 because you write a check to pay your monthly bill. iii. a means of borrowing money
A) i only B) ii only C) iii only D) i and ii E) i and iii
In which of the four market structures do sellers act as price takers?
A) Perfect competition B) Monopolistic competition C) Monopoly D) Oligopoly
Compared to monopoly pricing, an optimal two-part tariff
A) equates marginal revenue and average revenue. B) reduces economic efficiency. C) eliminates the deadweight loss. D) increases consumer surplus.
Refer to Figure 9.6. Including the consumers' expected tax burden, the total change in welfare from this policy is
A) -$6000. B) -$5250. C) -$4500. D) $4500. E) $5250.