Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
In the long run, how much profit will each firm in this industry earn each week?
A. $1,500
B. $2,000
C. $0
D. $1,000
Answer: C
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Define horizontal differentiation
What will be an ideal response?
If fixed cost at Q = 100 is $130, then
a. fixed cost at Q = 0 is $0 b. fixed cost at Q = 0 is less than $130 c. fixed cost at Q = 200 is $260 d. fixed cost at Q = 200 is $130 e. it is impossible to calculate fixed costs at any other quantity
The marginal cost is the:
a. b and c. b. change in total cost as the quantity changes by one unit. c. change in total variable cost as the quantity changes by one unit. d. change in total fixed cost as the quantity changes by one unit. e. same as the fixed cost when average fixed cost is at a minimum.