When a second firm enters a monopolist's market:
A. the former monopolist's average cost increases as its output level decreases.
B. the demand curve facing the former monopolist shifts to the right.
C. the market price rises as the average cost increases.
D. None of these
Answer: A
Economics
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If a perfectly competitive firm's total revenue is less than its total variable cost, the firm
A) should continue to produce and increase its demand. B) should stop production by shutting down temporarily. C) should raise its price above its average variable cost. D) should adopt new technology in order to lower its costs of production.
Economics
Rational people make decisions "at the margin" by comparing ______
Fill in the blank(s) with correct word
Economics