Answer Happy

What is average revenue? O The price multiplied by the quantity sold. O It is equal to the price in perfectly competitive markets, O The extra revenue derived from the sale of one more unit. The total revenue divided by the price.
Which of the following statements is correct concerning the kinked-demand curve variant of oligopoly theory? o It assumes that while the some firs will charge the same price they may produce different outputs. it assumes that the portion of the demand curve above the kink is inelastic and the portion below the kink is elastic it assumes that the portion of the demand curve above the kink is elastic and the portion below the kink is inelastic It assumes that while the some firms will produce the same output they will charge different prices O It assumes that the marginal costs of all firms are the same
QUESTION 22 What does excess capacity mean? The situation where a firm's output is below economic capacity The situation where a firm's output is above economic capacity The situation where a firm is producing an output below equilibrium The situation where a firm is producing an output above equilibrium
QUESTION 31 What is the term for a market structure in which there is only one buyer? a O Absolute advantage. O Natural monopoly O Monopsony O Monopoly
QUESTION 28 Which of the following statements is true if a firm is hiring labour under conditions of a perfectly competitive factor market? The firm's labour supply curve will be upward sloping O The firm's labour demand curve will be perfectly elastic The firm's labour demand curve will be upward sloping The firm's labour supply curve will be perfectly elastic