A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15
What will happen to the number of firms in the industry and to the industry's output in the long run?
A) The number of firms remains constant and the industry's output decreases.
B) The number of firms and the industry's output increase.
C) The number of firms remains constant and the industry's output increases.
D) The number of firms and the industry's output decrease.
B
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Is it possible for accounting profit to be positive but economic profit to be negative? Explain with an example
What will be an ideal response?
Bundling products makes sense for the seller when
A) consumers have heterogeneous demands. B) the products are complementary in nature. C) firms cannot price discriminate. D) both A and C.
Which of the following is true if the price of coffee increases?
a. The demand for tea, a substitute good, will decrease. b. The demand for coffee will increase. c. The demand for coffee and tea will decrease. d. Both the demand for coffee and tea will increase. e. The demand for tea, a substitute good, will increase.
Briefly discuss the role of moral hazard in risk.
What will be an ideal response?