Under perfect competition, the demand curve facing a firm and the firm's marginal revenue curve are
a. vertical at the firm's chosen output level
b. both vertical, but the demand curve is further to the right than the marginal revenue curve
c. both vertical, but the marginal revenue curve is further to the right than the demand curve
d. both horizontal at the level of the market price
e. both horizontal, but the demand curve is above the marginal revenue curve
D
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Other things the same, if the U.S. price level falls, then
a. U.S. residents want to buy more foreign bonds. The real exchange rate rises. b. U.S. residents want to buy more foreign bonds. The real exchange rate falls. c. U.S. residents want to buy fewer foreign bonds. The real exchange rate rises. d. U.S. residents want to buy fewer foreign bonds. The real exchange rate falls.
How does economies of scale improve second-degree price discrimination?
A. Firms have increasing opportunity costs and therefore must sell more goods at higher prices to make up the extra costs. B. ATC decreases and then increases which affects the cost to firms. C. People have increasing marginal benefit as ATC decreases. D. ATC decreases as output increases which allows a firm to charge lower prices at different output levels.