Assume That for a Particular Firm's Output Price = $80,marginal

question 79

Multiple Choice

Assume that for a particular firm's output price = $80,marginal cost = $30,average total cost = $25.This information suggests that the firm in question has:

• A)no market power.
• B)very little market power.
• C)a fair degree of market power.
• D)absolute market power.

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Definitions:

Shift

A change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at any given price.

Capital Stock

The total amount of physical goods that are used for production of other goods and services.

Economy

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Increase

An upward change or growth in a quantity or value.