The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
B
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If a monopolist has no marginal costs and only recurring fixed costs, then, if he produces, any quantity that he produces is profit maximizing if the price elasticity of market demand is -1.
Answer the following statement true (T) or false (F)
Exhibit 8-10 Price and cost data for a firm Q P AVC ATC MC 0 $12 ? ? ? 1 12 3 5 5 2 12 5 6 7 3 12 7.3 8 12 4 12 9.5 10 16 In Exhibit 8-10, MR is the same as which column?
A. Q. B. P. C. AVC. D. ATC. E. MC.
In the short run, a firm's output level is 5 units. Its average cost is $40 and its fixed cost is $50. What is this firm's variable cost of producing 5 units?
A) VC = $50 B) VC = $100 C) VC = $150 D) VC = $175
Suppose Heidi's Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be
A. U-shaped. B. downward sloping to the right. C. upward sloping to the right. D. horizontal.