Suppose the price you are willing to pay for a new car is greater than the marginal cost of producing that new car. Under which market structure could you be most confident that you would be able to buy that new car?
A. Perfect competition
B. Oligopoly
C. Monopoly
D. Monopolistic competition
Answer: A
You might also like to view...
If indifference curves and budget lines are used to analyze consumer choice, an inferior good will
A. escape detection when income rises. B. be easily identified because the quantity purchased will fall as income rises. C. be easily identified because the quantity purchased will rise as income rises. D. be easily identified because it will change the slope of the budget line. E. escape detection because this model does not show that relationship.
Devaluation of a country's currency is likely to
a. raise the prices of imported goods b. reduce the prices of exported goods c. shift resources into production of exported goods d. raise all prices e. all of the above
Which statement holds true in the post-World War II era?
(a) There was a permanent increase in the percentage of working adult women with children. (b) Firms found it most profitable to treat women as individuals rather than groups. (c) Marriage bars returned. (d) Female participation in farming, common labor and craft work in the U.S. increased significantly.
Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 50, the total cost is:
A. $2,100. B. $2,800. C. $4,500. D. $6,300.