It’s easy to determine if a firm is making long-run production decisions by looking at its cost structure because, in the long run, a firm does NOT have any __________ costs.

Why would a theme park practice price discrimination by age for admission but not for souvenirs? Which age group would pay more? Why?

  The perfectly competitive firm cannot influence the market price because

  Jane founded a startup that prototyped an electric car with a longer driving range than Tesla’s car. Unfortunately, she cannot find any investors to lend her enough money to market her product to consumers. Jane is facing which kind of barrier to entry?

  If a firm generates $370,000 in revenue, earns $210,000 in economic profit, and its explicit costs are $90,000, what are its implicit costs?

  If the price is greater than both the marginal cost and the average variable cost, what should a perfectly competitive firm do?

  If a firm hires another worker and her marginal product of labor is positive, we know that the firm’s total output is

  Suppose a monopolist lowers the price of its product from $60 to $50, and the quantity it is able to sell increases from 200 to 350. The change in the monopolist’s total revenue is equal to

B.          Q = 2,000          TR = $3,000          TFC = $1,500          AVC = $4          MC = $3

  An explicit cost for a business that manufactures bicycles would be the