Microeconomics III: Markets and Externalities - Market Challenges and Solutions
7 important questions on Microeconomics III: Markets and Externalities - Market Challenges and Solutions
True or False. In a perfecty competetive market, the marginal revenue (MR) will always be equal to the market price.
What is the formula of Average Total Cost (ATC)?
True or False. In the short run, if price drops below minimum AVC, we should shut down temporarily to avoid losing more money.
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True or False. The long run supply curve is perfectly elastic.
Meaning firms has unspoken agreement
What are 3 instances of Market Failure?
- Free Rider
- Tragedy of the commons
- Externalities
True or False. Positive externalities lead to underproduction.
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