If Abigail can make more candles in one day than Pierre, then Abigail has an absolute advantage in making candles
Indicate whether the statement is true or false
TRUE
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If any of the assumptions of perfect competition are violated,
A) supply-and-demand analysis cannot be used to study the industry. B) graphs with flat demand curves cannot be used to study the firm. C) graphs with downward-sloping demand curves cannot be used to study the firm. D) there may still be enough competition in the industry to make the model of perfect competition usable. E) one must use the monopoly model instead.
Which of the following is not correct concerning predatory dumping?
a. It may be a way to discourage the development of domestic production of a good. b. It may drive out established firms. c. There are a great number of documented cases of predatory dumping. d. In actuality, the blocking of entry on a worldwide scale would be extremely difficult to accomplish. e. In pursuing their monopoly position after dumping, dumpers may actually encourage the entry of other firms.
Farm price supports require that the government buy up surplus goods.
Answer the following statement true (T) or false (F)
To maximize profit, a firm will produce the level of output where MR = MC. If a firm actually makes a profit depends on the relationship of price to average total cost. What are the three possible relationships between price and average total cost that
determine if a firm will make a profit, experience a loss, or break even? What will be an ideal response?