When will speculators' actions raise social welfare?
a. Always.
b. When they drive down market prices.
c. When their expectations prove to be correct.
d. When they are not risk averse.
c. When their expectations prove to be correct.
Economics
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A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. How much profit is each firm making if fixed costs are $375 per firm?
What will be an ideal response?
Economics
The shape of the short-run average total cost curve is a result of
A. economies of scale. B. diseconomies of scale. C. falling profits. D. the law of diminishing marginal product.
Economics