In a perfectly competitive industry, the equilibrium price is $10, and the minimum average total cost of the industry’s firms is $20. If this is a constant-cost industry, we can expect that in the long run, firms will _____ the market, shifting the industry’s short-run supply curve _____.

In the market for apartment rentals, the demand and supply equations are given by QD = 5,000 – 3P and QS = 5P + 1,000, where P is the price per apartment and Q measures the quantity of apartments. What is the equilibrium quantity?

Suppose the supply curve for backpacks is Q = 2P – 36. What is the highest price at which no producer is willing to sell backpacks (i.e., the supply choke price)?

In the market for apartment rentals, the demand and supply equations are given by QD = 9,000 – 2P and QS = 3P + 1,000, where P is the price per apartment and Q measures the quantity of apartments. What is the equilibrium quantity?

Which of the following is an example of the sunk cost fallacy?

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 _____.