In the Cournot equilibrium, the price that each firm accepts is
A. the same as the competitive price.
B. lower than the monopoly price, but higher than the competitive price.
C. slightly higher than the monopoly price, but lower than the competitive price.
D. the same as the monopoly price.
Answer: B
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A firm is operating in its range of economies of scale and is on both its LRAC curve and its short-run ATC curve. At that level of output, the slope of its LRAC curve is
A) zero and the slope of its ATC curve is zero. B) zero and the slope of its ATC curve is negative. C) negative and the slope of its ATC curve is zero. D) negative and the slope of its ATC curve is negative.
With perfect price discrimination, the marginal revenue curve
A) is above the demand curve. B) is equal to the demand curve. C) is horizontal. D) is below the demand curve.
Which of the following is a microeconomics topic?
a. the price of a new home b. the inflation rate c. the economy's growth rate d. the unemployment rate e. forecasts of recession
Whenever marginal cost is positive, average cost curves are upward sloping.
Answer the following statement true (T) or false (F)