Assume that labor is a variable input. The average wage of workers increases in a purely competitive industry. This change will result in a(n)

According to the accompanying diagram, at the profit-maximizing output, the firm will realize Q 17 econ 202 final exam.png 

If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that

An important economic problem associated with pure monopoly is that, at the profit-maximizing outputs, resources are

If a purely competitive firm is facing a situation where the price of its product is lower than the total cost, then all of the following applies, except: 

 A firm should always continue to operate at a loss in the short run if: 

Which would contribute most to a firm experiencing “economies of scale”? 

Refer to the diagram. This firm’s demand and marginal revenue curves are based on the assumption that Q30 ECON 202 final.png

A monopsonist (single buyer) in the labor market that is also a monopolist in its product market will hire fewer workers and pay lower wages than a firm that is only a monopsonist in the labor market but faces perfect competition in its product market.

 A firm has fixed costs of $200 and the following variable costs:   Output 0 1 2 3 4 5 6    VC 0 50 90 140 200 280 380  Which output level has the lowest average total cost?