At equilibrium, each firm will realize:
Refer to the cost table above. Now suppose that there are 600 identical firms in this industry, each with the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows:
A. An economic profit of $155
B. An economic profit of $35
C. A loss of $45
D. A loss of $135
A. An economic profit of $155
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Refer to Sales Tax. After the tax is imposed, consumers' surplus is equal to
The following questions refer to the accompanying diagram which shows the effects of a sales tax imposed on consumers. The initial price and quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + B.
b. area B.
c. area B + C.
d. area A + B + C + D + E.
A New Keynesian firm chooses
A) its selling price and how much it sells at that price. B) its selling price but not how much it sells at that price. C) how much it sells but not the selling price. D) neither how much it sells nor the selling price.
The practice by a monopolist of charging each buyer the highest price he/she is willing to pay is called
A) first-degree discrimination. B) second-degree discrimination. C) third-degree discrimination. D) fourth-degree discrimination.
In the short run, all costs are variable
a. True b. False Indicate whether the statement is true or false