If a perfectly competitive firm faces a market price of $3 per unit, and it decides to produce 30,000 units, the market price will likely:
A. stay the same.
B. increase.
C. increase initially and then decrease.
D. decrease.
Answer: A
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The above figure shows a perfectly competitive firm. If the market price is $15, the firm
A) is incurring an economic loss. B) is making an economic profit. C) is making zero economic profit. D) will immediately shut down. E) might shut down but more information is needed about the AVC.
Explain why a tax increase on cigarettes in one state might not lead to a substantial price increase for all consumers in that state
What will be an ideal response?
Michigan recently did away with property taxes. Alternative funding for schools could come from
a. a lottery system. b. an increase in sales tax and income tax. c. an increase in corporate taxes. d. All of the above are correct.
Short-run macroeconomic equilibrium occurs at the point of intersection of the short-run aggregate supply curve and the short-run aggregate demand curve
a. True b. False Indicate whether the statement is true or false