Economics 201 Final Exam: Economics 201 Final Exam: Latest Updated Study Guide Questions
What is a price-taker? (Ans- when a firm or an individual takes the price of a good as determined by market supply and demand. When a firm is profitable, what does this mean? (Ans- Price > Average total costs When should a firm shut down? (Ans- When Price < Average total costs firms in perfectly competitive markets tend to earn how much in long run economic profits? (Ans- They typically earn zero profits in long run Definition of a monopoly (Ans- a market structure in which one firm makes up the entire market. Characteristics of a monopoly (Ans- -One seller-No close substitutes for the good -Barriers to entry -Many buyers -Firms are price SEARCHERS -One firm produces all of the market's output -They control price Under a monopoly... (Ans- equilibrium prices are higher and equilibrium quantities are lower than under perfect competition
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Williston State College
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ECON 201
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- May 22, 2025
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what is a price taker ans when a firm or an ind
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when a firm is profitable what does this mean a
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when should a firm shut down ans when price a
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