Distinct from any other market structure, the firm in long-run perfect competition ends up producing where
a. P = MR = MC = ATC, and AFC = 0
b. P > MR = MC = ATC, and AFC = 0
c. P < MR = MC < ATC, where ATC = (AFC + AVC + MC)
d. P = MR = MC = ATC, where ATC = (AFC + AVC)
e. P > MR and ATC > MC, where MC = (AFC + AVC)
D
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If a company that drilled for and produced oil acquired a firm which refined oil into gasoline, this would be referred to as a
A) horizontal merger. B) vertical merger. C) conglomerate merger. D) reverse merger.
A legal restriction on the amount of a good that can be imported into a country is known as a
A) voluntary restraint agreement. B) tariff. C) quota. D) Domestic Protection Restraint (DPR).
If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below.
If the regulated pay-per-view charge to watch a fight were $15 per household, then ________ households would watch the fight, and the loss is total economic surplus would be ________ relative to when there is no charge to watch the fight.
A. 10 million; $225 million B. 10 million; $25 million C. 20 million; $25 million D. 20 million; $225 million
In an oligopolistic market, each firm
A. has a constant marginal cost. B. must consider the reaction of rival firms when making a pricing or output decision. C. faces a perfectly elastic demand function. D. produces at minimum average cost in the long run.