The cost to a firm of producing one more unit of output
A) usually exceeds the firm's price.
B) is significantly less than the firm's price for purely competitive firms operating in long-run equilibrium.
C) usually equals the firm's price for monopolistically competitive firms.
D) is the firm's marginal cost.
D
You might also like to view...
Which of the following statements is TRUE?
A) The voting power of a nation in the International Monetary Fund is determined by its quota subscription. B) The voting procedure in the International Fund is determined by the World Bank. C) The voting power of a nation in the International Monetary Fund is called special drawing rights. D) All nations that belong to the International Monetary Fund have equal voting power.
When the federal government installs a price support program that requires the government to purchase all of a good not bought in the private economy at the support price, changes in producer surplus
A) are negative. B) are positive, but more than offset by the cost to consumers and the government. C) are positive, and not offset by the cost to consumers and the government. D) and consumer surplus are both positive.
Ithout productivity growth, what is the longrun effect of labor migration on the receiving country?
a. There will be an increase in production of the laborintensive good. b. Wages will fall. c. Returns to capital will increase. d. None of these is the longrun effect.
The contestable market model of oligopoly bases pricing and output decisions on:
A. the threat of new entrants into the market. B. market structure. C. market share. D. the degree of product differentiation.