The figure below shows the retail demand for running shoes. If the distributor (the retailer) is a monopoly and the marginal cost of distributing the shoes is $20 per pair, the manufacturer's wholesale demand curve lies
A) $20 below the retail demand curve, D.
B) $20 below the retail marginal revenue curve, MR.
C) $20 above the retail demand curve, D.
D) $20 above the retail marginal revenue curve, MR.
B) $20 below the retail marginal revenue curve, MR.
Economics
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If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
a. MC = MR > ATC. b. MC = MR < ATC. c. MC = ATC > MR. d. MC = MR = ATC. e. this situation is not possible.
Economics
A government, based upon its policy decisions, can determine the position and shape of the production possibilities frontier that the economy faces.
Answer the following statement true (T) or false (F)
Economics