Jack is thinking of starting a sweater company. Sweaters operate in a perfect competition market, which means Jack will do which of the following?
a. Be unable to enter the sweater industry because only one firm is allowed to sell sweaters
b. Face high and expensive restrictions on starting his business
c. Face no barriers to enter the industry and start his business
d. Need to get permission from the local government and from his potential competitors
c. Face no barriers to enter the industry and start his business
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If a monopolist's demand curve shifts to the left such that it becomes tangent to the ATC curve at the output for which marginal revenue equals marginal cost, the monopolist will make only a normal profit
a. True b. False Indicate whether the statement is true or false
Suppose demand can be described with the equation Q = 900?5P and supply with the equation Q = 100 + 5P. Complete the following table. Determine the equilibrium price and quantity. ? Quantity Quantity Surplus/ Price Demanded Supplied Shortage $100 _____ _____ _____ 95 _____ _____ _____ 90 _____ _____ _____ 85 _____ _____ _____ 80 _____ _____ _____ 75 _____ _____ _____ 70 _____ _____ _____ 65 _____ _____ _____ 60 _____ _____ _____ ? ?
What will be an ideal response?