When a firm sells 1 million coat hangers, its total revenue is $2 million. When it sells 2 million coat hangers, its total revenue is $3.5 million. Is this firm a price taker? Explain
No. When the firm sells 1 million coat hangers its average revenue (price) is $2 . When it sells 2 million coat hangers its average revenue is $1.75 . Because the firm's average revenue is not constant at the two different levels of output, it is not a price taker.
Economics
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The figure above shows the market for coffee. The ________ price that producers must be offered to get them to produce 10 million pounds of coffee per month is ________
A) maximum; $2.00 B) maximum; $3.50 C) minimum; $2.00 D) minimum; $3.50
Economics
One concept that behavioral economists use to account for procrastination is:
A. the time inconsistency of our decision-making. B. the fungibility of money. C. thinking inconsistently about prices. D. framing bias.
Economics