Refer to the accompanying figure. Total producer surplus in this market is:
A. $10
B. $125
C. $500
D. $250
Answer: B
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Differentiate between a pure strategy and a mixed strategy
What will be an ideal response?
Prices that adjust slowly to their long-run equilibrium ________
A) help the economy to avoid economic fluctuations B) call for policies that focus on short-run fluctuations C) are conducive to maintaining low inflation D) all of the above E) none of the above
A concentration ratio measures
A) the average size of the firms in the industry. B) the sales of the three largest firms in the industry minus the costs of these three largest firms in the industry. C) the share of industry sales accounted for by the largest firms in the industry. D) the excess capacity found in a particular oligopolistic industry.
Marginal cost is always greater than zero, regardless of the output level
Indicate whether the statement is true or false