If a firm practices first-degree price discrimination, the firm must

Government encouragement of monopoly

Suppose the demand curve for backpacks is Q = 38 – 2P. What is the lowest price at which no consumer is willing to buy backpacks (i.e., the demand choke price)?

A firm is producing 300 units of output at a total cost of $6,000, with a variable cost of $5 per unit. What is the firm’s average fixed cost?

A donut shop has noticed that when they increase the price of chocolate donuts by 5%, the quantity demanded of breakfast sandwiches decreases by 1%. The cross-price elasticity of demand for breakfast sandwiches is _____, so the two foods are _____.

To maximize profits (independent of the type of a market the firm is in), a firm should produce where

Suppose the equilibrium price for renting an apartment is $800 per month. Concerned about the cost to tenants, the government imposes a price ceiling of $400 per month. This policy will _____.

In production theory, the short run is defined as _____ and the long run is defined as _____.

Refer to the following figure. Suppose a firm spends $4,000 per day producing a good. The wage rate per worker is $400 per day and rental rate per unit of capital is $1,000 per day. The firm’s isocost line at the current expenditure level is represented by

Suppose that the inverse demand in a market is P = 100 – 2Q. A firm’s marginal cost is constant and equal to $50. If the marginal cost increased from $50 to $60 and the firm is a monopoly, then it would raise its price _____. If the marginal cost increased from $50 to $60 and the firm operates in a perfectly competitive market, then the market price would _____.