In long?run equilibrium for a monopolistically competitive firm, the firm's demand curve is ________ its average total cost curve.
A. above
B. below
C. just tangent to
D. either above or below
Answer: C
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If the firm shown in the table changes the quantity it produces to 7, what would be the result?
a. The company would take a loss.
b. The company would make a slight profit.
c. The company would break even.
d. The company would make a large profit.
Exhibit 7-16 Short-run cost curves for a competitive firm
?
In Exhibit 7-16, if the market price of its product is $50 per unit, then the firm will:
A. break even. B. shut down. C. exit the industry. D. earn a positive economic profit.
Whenever a firm can charge a price greater than marginal cost
A) the firm must be a monopolist. B) there is some loss of economic efficiency. C) consumers have the ability to choose a close substitute. D) the firm will earn economic profits.
If the marginal propensity to consume is .9, then the marginal propensity to save must be:
A. 1. B. .1. C. 1.1. D. .9.