Answer the following statement(s) true (T) or false (F)
1. In a perfect competition, profits continue indefinitely.
2. Patents allow firms to price their products below marginal costs.
3. The equilibrium price is the same whether a firm has a monopoly or is engaged in perfect competition.
4. Monopolists stop producing when price exceeds marginal cost.
5. Monopoly profits are inefficient.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
You might also like to view...
If you are earning $20,000 this year and the CPI is 165, your real income in base year prices is
A) $121.21. B) $12,121.21. C) $20,000. D) $16,500. E) $33,000.
Assume the market shares of the six largest firms in an industry are 15 percent each. The six-firm concentration ratio would indicate that the industry is highly concentrated, while the Herfindahl- Hirschman Index would not
Indicate whether the statement is true or false
If potatoes are inferior goods, which of the following will increase the demand for these goods?
a. Increase in the price of a complement b. Decrease in income c. Decrease in the price of a substitute d. Increase in income
Market-based management firms do not have structures like headquarters
Indicate whether the statement is true or false