Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Mega Corp: TC = 5,000 + 100QBig Inc: TC = 4,000 + 200QFor both firms, average total cost:
A. increases as quantity increases.
B. declines as quantity increases for Mega Corp and increases as quantity increases for Big Inc.
C. declines as quantity increases.
D. is constant for all quantities.
Answer: C
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The reason that patents are granted is
A) to encourage a high rate of consumption. B) to protect new techniques developed through research and development. C) to encourage free trade. D) to increase the labor force.
According to William Shepherd's examination of competitive trends in the U.S. economy, a tight oligopoly
a. is a single firm that controls the entire market and can block entry b. is an industry in which the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other c. is an industry in which the top four firms supply more than 60 percent of the market, have unstable market shares, and do not cooperate with each other d. is an industry in which a single firm has over half the market share and no close rival e. is an industry in which a single firm has over one-third of the entire market, the market share is stable, and the firm cooperates with other firms in the industry
It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations
a. True b. False Indicate whether the statement is true or false
Since 1960, Canadian labor force participation rate has ________ and the unemployment rate has ________.
A) trended higher; trended lower B) trended lower; varied over the business cycle C) trended higher; varied over the business cycle D) trended higher; trended higher E) varied over the business cycle; trended higher