In the economic way of thinking, which statement makes the most sense?
A) Costs determine prices.
B) Prices determine costs.
C) Costs determine demand.
D) Demand determines supply.
B
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Consider a monopolist that has a total cost curve of TC = 110Q - (0.25)Q 2 . The market demand equation is Q d = 155 - P.
(A) What are the total revenue, marginal revenue, marginal cost, equilibrium quantity, equilibrium price, and profits for the monopolist in this market? (B) Suppose the government instructs the firm to produce using average cost pricing. What are the equilibrium quantity, equilibrium price, and profits? (C) Suppose further that the government wants the firm to produce where supply equals demand. What will be the equilibrium quantity, equilibrium price, and profits?
_________ is the value, worth, applicability, productiveness or usefulness of a resource
a. Utility b. Marketability c. Credit d. Cache
If marginal cost equals marginal revenue on the downward-sloping segment of the marginal cost curve, then increasing production until marginal cost again equals marginal revenue, this time on the upward-sloping segment of the marginal cost curve, is a profit- maximizing decision
Indicate whether the statement is true or false
If a shoe monopoly experiences an outward shift in its demand curve, the industry demand curve for shoes must have
a. shifted slightly less b. been flat to begin with c. shifted slightly more d. shifted more quickly e. made the exact same shift