The structure of a firm can fail in similar ways to market failure
Indicate whether the statement is true or false
True
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Which of the products below is towards the spectrum of perfectly competitive industry?
a. Nike shoes b. Eggs c. Purdue Chicken d. Restaurants
If the measured elasticity of supply coefficient equals 1.3, then supply is: a. perfectly elastic. b. elastic
c. unit elastic. d. inelastic.
Which of the following is an example of an excise tax?
a. a tax on the wages that a firm pays its workers b. a tax on tobacco c. a tax on corporate profits d. the portion of federal income taxes earmarked to pay for Social Security and Medicare
Jerry's Quarry sells building stone in a perfectly competitive market. At its current level of building stone production, Jerry's Quarry has marginal costs equal to $45, and AVC is rising. If the market price of building stone is $50, Jerry's Quarry should:
A. decrease its level of building stone production. B. continue producing its current level of production. C. increase its production of building stone. D. shut down and produce no building stone.