Market power guarantees profit

A) True, which is why firm's locate as far away from each other as possible.
B) False, market power guarantees price greater than marginal cost.
C) True, market power guarantees price greater than average cost.
D) False, market power guarantees price equal to average cost.

B

Economics

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________ account(s) for between 1 and 4 percent of health care costs in the United States

A) The aging population B) The payments to settle malpractice lawsuits and the premiums doctors pay for malpractice insurance C) Uninsured patients receiving treatments at hospital emergency rooms that could have been provided less expensively at doctor's offices D) Advances in medical technology

Economics

In the short run, each firm in a perfectly competitive market is free to

a. increase its plant size b. vary its output level within its existing capacity c. exit the industry without losses d. set a price above the market price e. decrease its plant size

Economics