Refer to the graph below. The time horizon depicted in the graph:
A. Must be the immediate market period
B. Cannot be the immediate market period
C. Must be the long run, not the short run
D. Can be determined by focusing on the demand curve
B. Cannot be the immediate market period
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Identify three key factors that can cause a shift in the aggregate demand curve
What will be an ideal response?
The above figure shows the demand and cost curves for a firm in monopolistic competition. In the long run, the demand for this firm's product will
A) decrease as other firms enter the industry. B) decrease as product differences disappear. C) become less elastic as firms exit the industry. D) become less elastic as other firms enter the industry.
If a monopolist can perfectly price discriminate, then
A) price equals average cost for each unit sold. B) price equals marginal cost for each unit sold. C) price equals marginal cost for the last unit sold. D) the firm can ignore the marginal cost curve.
Price discrimination exists when a firm sells the same good at __________________ to different groups of customers.
a. more than two prices b. more than three prices c. the same price d. more than one price