« previous next »

Author Question: In a perfectly competitive market, if market price is lower than the average total cost of ... (Read 132 times)

lidoalex

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
In a perfectly competitive market, if market price is lower than the average total cost of production:
 
  A) new firms will enter the market.
  B) existing firms will leave the market.
  C) all existing firms will earn positive economic profits.
  D) all existing firms will earn zero economic profits.

Question 2

Which of the following does a social planner necessarily need to know to restore efficiency in a monopoly market?
 
  A) The monopolist's marginal costs only
  B) The buyers' demand for a close substitute of the product sold in the market
  C) The monopolist's marginal revenue and the tax levied on the sale of the good
  D) The monopolist's marginal costs and the buyers' willingness to pay for the good


daiying98

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Average winter rainfall and variation in rainfall among sites inhabited by Suromalus ater Average winter rainfall and variation in rainfall among sites inhabited by Suromalus ater
Uranus revolves around the Sun once every 84 Earth years. Its average distance from the Sun is rough Uranus revolves around the Sun once every 84 Earth years. Its average distance from the Sun is rough
Lineweaver–Burk plots of the reactions with and without a competitive inhibitor Lineweaver–Burk plots of the reactions with and without a competitive inhibitor
A substrate and its competitive inhibitor A substrate and its competitive inhibitor
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Iraqi market Iraqi market
Video: Krebs cycle : Formation of acetyl coenzyme A and Electron transport chain

For a complete list of videos, visit our video library