In a monopolistically competitive market, the equilibrium price is $21, and each identical firm has a fixed cost of $40 and a constant marginal cost of $1. What is the output level of each producer?
A) q = 1
B) q = 2
C) q = 2.9
D) q = 21
B
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is
A) 5¢ per kilowatt. B) 10¢ per kilowatt. C) 15¢ per kilowatt. D) 20¢ per kilowatt. E) 0¢ per kilowatt.
If price is determined as a multiple of costs, then a firm is using
A) cost plus pricing. B) product line extension pricing. C) peak-load pricing. D) marginal cost pricing.
When the nation of Duxembourg allows trade and becomes an importer of software,
a. residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg rises. b. residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg falls. c. residents of Duxembourg who produce software become better off; residents of Duxembourg who buy software become worse off; and the economic well-being of Duxembourg rises. d. residents of Duxembourg who produce software become better off; residents of Duxembourg who buy software become worse off; and the economic well-being of Duxembourg falls.
If the demand for steak increases as income increases, then steak is a(n):
A. complementary good. B. inferior good. C. normal good. D. substitute good.