If a firm notices that its average revenue equals the current market price, that firm must be participating in a competitive market
a. True
b. False
Indicate whether the statement is true or false
False
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Catfish farming is a perfectly competitive industry. Catfish farmers suffered tremendous economic losses in the late 2000s. As a result,
A) some new catfish farmers entered the market. B) some catfish farmers exited the market. C) no catfish farmers entered or exited this market. D) the supply of catfish increased in 2010. E) new demanders entered the market after some firms had exited.
In calculating GDP, economists
A) measure total expenditure as the only true measure. B) can measure either total expenditure or total income. C) measure total income as the only true measure. D) measure total income minus total expenditure. E) measure total income plus total expenditure.
If the price of gasoline were $5, many people would stop buying gasoline while others would continue to do so. This would indicate
A) those who are buying gasoline value it at least $5 per gallon. B) those who are not buying gasoline value it more than $5 per gallon. C) only those who are extremely wealthy are buying gasoline. D) the price of gasoline needs to be regulated by the Federal Government.
The total consumer surplus enjoyed by all consumers in a market
a. exceeds the market price b. is measured by the area under the market demand curve c. is measured by the area beneath the market price d. is a Pareto improvement e. is called market consumer surplus