Output prices are irrelevant for a firm as it is calculating its cost curves.
Answer the following statement true (T) or false (F)
True
Rationale: All that matters for costs are input prices.
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The drug maker Wyeth produces the hormone-therapy drug Premarin, which is derived from the urine of pregnant mares. Not even Wyeth knows exactly what chemicals are in it, and the method of making the drug is a trade secret. Barr Laboratories has been trying to make a pill that is close enough to Premarin to be approved by the U.S. Food and Drug Administration as an "equivalent" drug. This story illustrates the importance of:
A. declining long-run cost curves as a way of preserving monopoly. B. economies of scope in cementing a monopoly position. C. barriers to entry in keeping a monopoly position. D. declining demand curves as an essential ingredient in keeping monopoly.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
The cost of a bachelor's degree in philosophy equals the tuition plus the cost of room and board.
Answer the following statement true (T) or false (F)
In the above figure, what would be the profit or loss at the profit-maximizing output for this natural monopolist?
A. -$1,200 B. $2,100 C. -$300 D. $2,700