Refer to Table 8.1. That the firm is perfectly competitive is evident from its
A) increasing marginal cost.
B) increasing total cost.
C) zero economic profits.
D) constant marginal revenue.
E) absence of marginal values at Q = 0.
D
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In the diagram of the decision tree, what lies at the bottom, the roots?
a. The basic decision b. The alternatives c. Resources d. Values
Figure 9.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit maximizing output level, its total fixed cost is:
A. $2,800. B. $5,200. C. $7,200. D. $9,000.
If the government set a price at $16, there would be price __________, that would cause a ___________ of ______ units.
A. floor; shortage; 10
B. floor; surplus; 10
C. ceiling; shortage; 10
D. ceiling; surplus; 10
A profit-maximizing monopolist facing the situation shown in the graph below should:
A. Shut down in the short run
B. Continue producing to minimize losses
C. Continue producing to make economic profits
D. Continue producing as long as price is greater than marginal cost