A surplus results when a
a. nonbinding price floor is imposed on a market.
b. nonbinding price floor is removed from a market.
c. binding price floor is imposed on a market.
d. binding price floor is removed from a market.
c
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Answer the following statements true (T) or false (F)
1. In a mature industry, all firms operate with constant returns to scale. 2. On a cost/output graph, the average fixed cost is constructed as a straight horizontal line. 3. Marginal cost crosses the average variable cost and the average total cost at their lowest points. 4. The average fixed cost remains constant even in the long run. 5. Marginal cost is related inversely to the marginal product.
An acquisition will not be profitable
a. In any circumstances b. As long as you paid lower than the company's discounted future profits c. Without a synergy that makes the company more valuable to you than to the current owner d. None of the above
Firms should begin their pricing decisions by:
a. assessing total marginal cost of the product b. identifying the value drivers in each customer segment c. researching the market price of competitors d. none of the above
When represented graphically, the government's demand for funds curve is
a. downward sloping b. upward sloping c. vertical d. initially downward sloping, then upward sloping e. initially rightward sloping, then downward sloping