Suppose Quarto Inc produces and sells dresses in a perfectly competitive market. Which of the following would be the firm's profit-maximizing outcome?
a. The firm earns a total revenue of $250 if it produces 10 dresses at a total cost of $500.
b. The firm earns a total revenue of $1,000 if it produces 20 dresses at a total cost of $800.
c. The firm earns a total revenue of $3,000 if it produces 30 dresses at a total cost of $1,000.
d. The firm earns a total revenue of $3,500 if it produces 40 dresses at a total cost of $2,000.
c
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For many jobs, as wages increase, the quantity supplied of labor increases. This set of facts is evidence that the
A) substitution effect is larger than the income effect and the supply of labor curve is upward sloping. B) income effect is larger than the substitution effect and the supply of labor curve is upward sloping. C) substitution effect is larger than the income effect and the supply of labor curve is backward bending. D) income effect is larger than the substitution effect and the supply of labor curve is backward bending.
An industry comprised of four firms, each with about 25 percent of the total market for a product, is an example of:
A. monopolistic competition. B. oligopoly. C. pure monopoly. D. pure competition.