What is the equilibrium price of a good or service?
What will be an ideal response?
The equilibrium price is the price at which the quantity demanded by the buyers is equal to the quantity supplied by the sellers.
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Identify the characteristics of a monopoly firm
a. The existence of barriers to entry and production of a homogeneous product b. The production of a unique product and a large number of sellers in the market c. The production of a standardized product and the firm is a price taker d. The existence of barriers to entry and the firm is a price taker e. The existence of barriers to entry and the firm is a price maker
If a firm is experiencing constant returns to scale
a. long-run average total cost neither rises nor falls as production increases b. average fixed cost is zero c. the increase in average variable cost is exactly offset by a decrease in average fixed cost d. the decrease in average variable cost is exactly offset by an increase in average fixed cost e. long-run average total cost is zero.