For the perfectly competitive firm, price
A) equals average revenue and marginal revenue.
B) equals average total cost.
C) changes as output changes.
D) depends on the fixed cost for the firm.
A
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Automobiles and many other products are differentiated. As a result
A) consumers of automobiles have difficulty deciding what type of imported automobile to buy. B) we see countries specializing completely in the production of automobiles. C) different countries may each have a comparative advantage in producing different types of automobiles. D) the quality of imported automobiles is less than it could be.
The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,
a. d and e. b. the supply curve of labor is relatively flat. c. offering a wage lower than the market wage means having no workers. d. the employer faces the market supply curve. e. the firm does not take the wage as given.