The decision to undertake product development in monopolistic competition is made by comparing the
A) marginal benefit of product development to the marginal cost of product development.
B) average revenue of product development to the average total cost of product development.
C) total revenue of product development to the total cost of product development.
D) firm's expenditure on product development to expenditures by competing firms.
A
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Barriers that prevent the entry of new firms may arise because: a. economies of scale exist over a substantial range of industry demand. b. marginal revenue is less than average total cost
c. the government protects some firms from competition. d. of both (a) and (c).
Which of the following is not a necessary condition for price discrimination? a. The firm must be a price maker
b. The firm must be able to distinguish between customers. c. The firm must be able to prevent resale of a product between customers. d. The firm must be able to produce homogeneous products. e. The firm must have a downward-sloping demand curve.
Accounting profit is equal to?
A. Total revenue minus the explicit cost of producing goods and services. B. Total revenue minus the opportunity cost of producing goods and service. C. Average revenue minus the average cost of products the last unit of a good or service. D. Marginal revenue minus marginal cost. E. Total revenue minus depreciation.
When a purely competitive industry is in long-run equilibrium, which statement is true?
A. Marginal revenue is greater than price. B. Price and average total cost are equal. C. Marginal cost is at its maximum level. D. Average total cost is less than marginal cost.