Write C for a purely competitive market, M for a monopolist market/industry, or F if neither one. ____________1. Each seller takes the role of a price taker. ____________2. Shutdown point is when determined selling price is less than a firm's AVC. ____________3. Firm maximizes profit when determined selling price is less than a firm's AVC. ____________4. In the long run, all costs become variable. ____________5. No good substitutes are available for the good or service the only firm offers. ____________ 6. Break-even position is when marginal cost is equal to AVC. ____________7. Only more than normal profits can be earned by the farms. ____________8. A firm's supply curve is its variable cost curve. ____________9. Profit is maximized at an output level where MR is equal to MC. ____________10. The firm and the industry are one. ____________11. Confined to a geographic area and regulated by a government agency ____________12. Faces a downward sloping demand curve and must maximize profits given the market demand and its cost of production. ____________13. No advertising cost ____________14. Affects no other firms with his actions and the actions of other firms do not affect him ____________15. If selling price ice is higher than average cost, there is zero profit.
Write C for a purely competitive market, M for a monopolist market/industry, or F if neither one. ____________1. Each seller takes the role of a price taker. ____________2. Shutdown point is when determined selling price is less than a firm's AVC. ____________3. Firm maximizes profit when determined selling price is less than a firm's AVC. ____________4. In the long run, all costs become variable. ____________5. No good substitutes are available for the good or service the only firm offers. ____________ 6. Break-even position is when marginal cost is equal to AVC. ____________7. Only more than normal profits can be earned by the farms. ____________8. A firm's supply curve is its variable cost curve. ____________9. Profit is maximized at an output level where MR is equal to MC. ____________10. The firm and the industry are one. ____________11. Confined to a geographic area and regulated by a government agency ____________12. Faces a downward sloping demand curve and must maximize profits given the market demand and its cost of production. ____________13. No advertising cost ____________14. Affects no other firms with his actions and the actions of other firms do not affect him ____________15. If selling price ice is higher than average cost, there is zero profit.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.7P
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Write C for a purely competitive market, M for a monopolist market/industry, or F if neither one.
____________1. Each seller takes the role of a price taker.
____________2. Shutdown point is when determined selling price is less than a firm's AVC .
____________3. Firm maximizes profit when determined selling price is less than a firm's AVC.
____________4. In the long run, all costs become variable.
____________5. No good substitutes are available for the good or service the only firm offers.
____________ 6. Break-even position is when marginal cost is equal to AVC.
____________7. Only more than normal profits can be earned by the farms.
____________8. A firm's supply curve is its variable cost curve.
____________9. Profit is maximized at an output level where MR is equal to MC.
____________10. The firm and the industry are one.
____________11. Confined to a geographic area and regulated by a government agency
____________12. Faces a downward sloping demand curve and must maximize profits given the market demand and its cost of production.
____________13. No advertising cost
____________14. Affects no other firms with his actions and the actions of other firms do not affect him
____________15. If selling price ice is higher than average cost, there is zero profit.
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