Which of the following statements is true?
A) A monopoly is a price taker because it faces a downward sloping demand curve.
B) A monopoly is a price maker because it faces a downward sloping demand curve.
C) A perfectly competitive firm is a price taker because it faces a downward sloping demand curve.
D) A perfectly competitive firm is a price maker because it faces a downward sloping demand curve.
B
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Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is the profit maximizing sales quantity?
A. 20 B. 2,000 C. 8,000 D. 0
Choices need to be made because of all of the following, except limited _____
a. resources b. income c. wants d. time e. availability of goods
The short-run supply curve for the perfectly competitive firm is that part of the marginal cost curve that lies above the average fixed cost curve
a. True b. False Indicate whether the statement is true or false
Table that shows the relationship between the price of a good and the quantity demanded
What will be an ideal response?