Economic efficiency requires that a natural monopoly's price be set corresponding to the quantity where marginal revenue equals marginal cost
Indicate whether the statement is true or false
FALSE
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Monopolistic competitors are
a. price takers b. price searchers c. price maximizers d. price ignorers e. collusive price fixers
When an economist says that the demand for a product has increased, this means that:
A. the product has become particularly scarce for some reason. B. product price has fallen and as a consequence consumers are buying a larger quantity of the product. C. the demand curve has shifted to the left. D. consumers are now willing to purchase more of this product at each possible price.
Refer to the graph shown, which depicts a perfectly competitive firm. When the industry is in long-run competitive equilibrium:
A. the price of the product will be $6. B. the firm will produce 100 units of output. C. the marginal cost of production will be $3. D. the firm will earn economic profits of $300 per day.
An advance in technology commonly refers to the ability to produce
What will be an ideal response?