A difference between a perfectly competitive market equilibrium and a perfect price discrimination equilibrium is that in a competitive market ________, whereas in perfect price discrimination ________
A) all units are sold where P = MC; only the last unit sold is at P = MC
B) deadweight loss varies depending on the shape of the MC curve; deadweight loss increases
C) consumers are better off; producers lose some sales due to high prices.
D) All of the above.
A
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Diseconomies of scale definitely means that as the firm increases its output, its
A) long-run average total cost increases. B) long-run average total cost decreases. C) short-run average total cost increases. D) short-run average total cost decreases.
In a competitive labor market, the change in total labor costs divided by the change in labor is always equal to:
a. one. b. the wage rate. c. the number of firms in the market. d. the change in total revenue. e. the competitive market price of the output.
The oldest theory of comparative advantage is based on:
a. factor abundance. b. productivity differences. c. product life cycles. d. preferences. e. human skills.
Price and output decisions are two aspects of the same choice
a. True b. False Indicate whether the statement is true or false