Which of the following statements is true?
Select one:
a. A monopolist faces a downward-sloping demand curve.
b. A firm in perfect competition faces an infinitely inelastic demand.
c. A product is vertically differentiated when consumers have idiosyncratic preferences.
d. Studies confirm that prices are not related to industry structure.
e. None of the above are true statements.
Which of the following statements is true?
Select one:
a. A monopolist faces a downward-sloping demand curve.
b. A firm in perfect competition faces an infinitely inelastic demand.
c. A product is vertically differentiated when consumers have idiosyncratic preferences.
d. Studies confirm that prices are not related to industry structure.
e. None of the above are true statements.
Related textbook solutions
Related questions
QUESTION 22
For a perfectly competitive firm, profit maximization (or loss minimization) occurs at the level of output at which
| a. |
MR = MC. |
|
| b. |
MR = AVC. |
|
| c. |
P = ATC. |
|
| d. |
MR = ATC. |
4 points
QUESTION 23
If MR > MC, then
| a. |
profits are being maximized. |
|
| b. |
the firm is producing too much of the good to be maximizing profits. |
|
| c. |
the firm can increase its profits (or minimize its losses) by increasing output. |
|
| d. |
the firm must be incurring losses. |
4 points
QUESTION 24
If firms are earning zero economic profits, they must be producing at an output level at which
| a. |
price minus marginal cost. |
|
| b. |
total revenue equals total costs, in other words, normal profits. |
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| c. |
price equals average variable cost. |
|
| d. |
marginal revenue equals marginal cost. |
|
| e. |
none of the above |
4 points
QUESTION 25
In the theory of perfect competition,
| a. |
the market demand curve is horizontal. |
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| b. |
the single firm faces a horizontal demand curve. |
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| c. |
the single firm faces a downward-sloping demand curve. |
|
| d. |
the market demand curve is downward sloping. |
|
| e. |
b and d |
