Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $9, then in the long run
A. new firms will enter the industry and the current firms will expand production.
B. the firm will exit the industry.
C. the firm will shut down.
D. None of the above is correct.
Answer: A
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Tom's consumption possibilities is defined by
A) his income and the prices of the goods that he consumes. B) his preferences for consumption of the goods that he consumes. C) the prices of the goods that he consumes only. D) his income only.
Summing up governmental intervention in the pricing of goods, we can say it
a. occurs only under wartime conditions b. has grown considerably during the past two decades and now characterizes the majority of our markets c. has peaked in the 1970s and now has only a shadow of its former influence d. occurs in relatively few markets because most market prices are determined by the forces of demand and supply e. occurs only in the production of farm goods
Which of the following best describes the production function?
(a) TP = (Land, Labour, Capital, Savings). (b) TP = f (Land, Labour, Capital, Savings). (c) TP = (Land, Labour, Capital, Enterprise). (d) TP = f (Land, Labour, Capital, Enterprise).
In a monopolistic competitive industry, firms can try to differentiate their products by
A. creating optimal perceptions of the product. B. choosing optimal locations from which the product is sold. C. enhancing the intangible aspects of the product. D. all of the above