Under perfect competition
A. accounting profits are always zero in the long run.
B. information about every possible economic opportunity is somewhat limited.
C. the demand curve and the marginal revenue curve are identical.
D. the firm has a limited amount of control over the market price.
C. the demand curve and the marginal revenue curve are identical.
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In its long-run equilibrium, a firm in monopolistic competition
A) makes zero economic profit and operates with excess capacity. B) makes zero economic profit and produces above capacity output. C) makes a positive economic profit and operates with excess capacity. D) makes a positive economic profit and produces above capacity output.
Exhibit 3-8 Demand and Supply Data for Video Games ? Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 ? In Exhibit 3-8, the equilibrium market price in this video game market would be:
A. $65 B. $60 C. $55 D. $50
A campus auditorium sells tickets at half price to students during the last 30 minutes before a concert starts. This is an example of:
A. price discrimination. B. price discrimination or peak-load pricing. C. peak-load pricing. D. None of the statements is correct.
Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. How much total tax revenue is raised by the tax?
A. $2 B. $20 C. $32 D. $40