In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market.
B) there is no incentive for the number of firms in the market to change.
C) there is profit incentive for firms to enter the market.
D) the market must be in long-run equilibrium.
A
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At its current production level, a monopolist's marginal revenue is $20 and its marginal cost is $10. Which of the following is CORRECT?
a. The monopolist should produce and sell more output. b. The monopolist should produce and sell less output. c. The monopolist is maximizing its profits at its current level of output. d. More information is required to decide if the firm needs to change its production.
Which of the following is true about price discrimination? a. When there are a number of competing firms, price discrimination is less likely because competitors tend to undercut the high prices charged those discriminated against. b. A profit-maximizing seller will charge a higher price for those with a greater willingness to pay, and a lower price for demanders with a lower willingness to
pay. c. Price differentials between groups will erode if reselling is easy. d. All of the above are true of price discrimination.