Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run?
a. Both will sell their products at a price equal to average total cost, but only the price taker will produce at minimum average total cost.
b. Both will sell their products at a price equal to average total cost, but only the competitive price searcher will produce at minimum average total cost.
c. Only the price taker will sell its product at a price equal to average total cost.
d. Only the competitive price searcher will sell its product at a price equal to average total cost.
A
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If a demand curve for a good is perfectly inelastic, then the seller could
A. increase price and not change the number of units purchased. B. ignore the effects of costs on its profits. C. rely on buyers to look for other products if it increases price. D. sell more units by advertising.
Explain the behavioral and structural approaches to government antitrust policy. Identify one practical problem with each approach.
What will be an ideal response?