Under perfect competition, the average revenue curve of the firm coincides with its average cost curve.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2U.S. public utilities are often:
a. perfect competitors.
b. created through patent protection.
c. regulated natural monopolies.
d. employee-owned public enterprises.
QUESTION 3Suppose, in the United States, each farmer is given a federal agricultural subsidy worth 30,000 . What will be the effect of such subsidy?
a. It discourages domestic agricultural production.
b. It allows U.S. farmers to sell their products for lower prices in foreign markets.
c. It gives foreign producers an unfair cost advantage.
d. It increases the amount of agricultural imports into the United States.
e. It reduces the prices of the primary products in the U.S. market.
QUESTION 4Which of the following commodities have a high short-run own-price elasticity of supply?
a. Livestock
b. Petroleum
c. Food crops
d. Diamonds
QUESTION 5A perfectly competitive firm faces a downward sloping market demand curve.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Which piece of legislation forbids most forms of price discrimination?
a. Sherman Act
b. Robinson-Patman Act
c. Cellar-Kefauver Act
d. Clayton Act
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