The equilibrium price of a good sold in a competitive market is $10. If an individual firm decides to sell its product at a price higher than $10, ________

A) the firm's profits will increase
B) the firm's revenue will increase
C) the firm will lose all its consumers
D) the firm's cost of production will decrease

C

Economics

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Normal profit is a(n) ________ cost because ________

A) implicit; it represents the cost of not running another firm B) explicit; a firm must pay income taxes on its profit C) implicit; it represents the cost of economic depreciation D) accounting; wages are considered an explicit cost E) depreciation; the equipment the firm owns wears out over time

Economics

Refer to Figure 7-4. With insurance and a third-party payer system, what is the amount of the deadweight loss?

A) $0 B) $1,500 C) $3,000 D) $9,500

Economics