If a firm in a perfectly competitive industry raises its price above market price,
A. profit will increase.
B. sales will drop to zero.
C. demand curves will become downward sloping.
D. total revenue for the firm will increase.
Answer: B
Economics
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For term life insurance, the policy holder pays
A) premiums based on current interest rates. B) a constant premium. C) premiums that vary with mortality risk. D) constantly declining premiums.
Economics
The producer surplus to a monopolist must be
A) less than zero or the firm is in violation of anti-trust statutes. B) at least as great as the producer surplus in a competitive market. C) positive, otherwise why would the monopoly produce? D) the same as for a competitive market.
Economics