If a perfectly competitive firm charges more than the market price, then it loses all of its customers
a. True
b. False
Indicate whether the statement is true or false
True
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The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to
A) a decrease in the supply of kayaks. B) a decrease in the quantity of kayaks supplied. C) an increase in the supply of kayaks. D) an increase in the quantity of kayaks supplied. E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.
The Acme Stereo Company had a capital stock of $24 million at the beginning of the year. At the end of the year, the firm had a capital stock of $20 million. Thus its
A) net investment was some amount but we need more information to determine the amount. B) net investment was $4 million for the year. C) gross investment was zero. D) net investment was -$4 million for the year.
It is possible that a multi-product monopolist will reduce the quality of a product below what its users prefer in order to make more profit
Indicate whether the statement is true or false
The law of diminishing marginal utility says that
a. as more of a good is consumed, total utility diminishes causing marginal utility to diminish as well b. as more of a good is consumed, total utility increases causing marginal utility to diminish c. with reference to consumption, more is better than less until a point is reached after which less is better than more d. with reference to consumption, less is better than more until a point is reached after which more is better than less e. we always value the "one before the last one" more