A firm is alone in selling good XYZ in a market, where the following holds: • A: the firm produces no other good than XYZ • B: the law of demand holds • C: the firm is a start-up • D: the firm is making zero profit • E: the good XYZ is a normal good • F: there are no close substitutes to the good XYZ • G: the firm demand = the market demand Further, the marginal revenue of that firm is declining. Why? Pick all statements that play a role in the explanation... E, F, G A, C, D, E A, B, G Your answer is incorrect. The correct answer is: B, G OB, G x

A firm is alone in selling good XYZ in a market, where the following holds: • A: the firm produces no other good than XYZ • B: the law of demand holds • C: the firm is a start-up • D: the firm is making zero profit • E: the good XYZ is a normal good • F: there are no close substitutes to the good XYZ • G: the firm demand = the market demand Further, the marginal revenue of that firm is declining. Why? Pick all statements that play a role in the explanation... E, F, G A, C, D, E A, B, G Your answer is incorrect. The correct answer is: B, G OB, G x

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 5SQ

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E1
fer to the accompanying figure Assume the market is originally at point W. Movement to point X is the result of Price W N Quantity Multiple Choice 4 O an increase in demand and a decrease in supply. an increase in demand and no change in supply. no change in demand and an increase in supply. a decrease in demand and an increase in supply
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