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6. What are supernormal profits?
- it's the word for when a wife or girlfriend buys something in the sale
- supernormal profits are earned when total revenue is greater than the total costs
- supernormal profits are earned when total cost is greater than the total revenue
7. In perfect competition, an increase in price would...
- lead to a monopoly
- lead to a decline in demand
- lead to an increase in demand
- lead to an oligopoly
8. Imagine a company coal town, where the coal company acts as the sole employer and therefore the sole purchaser of labor in the town. What is this?
- An oligopoly
- A monopsony
- A monopoly
9. What is marginal cost?
- the marginal cost of production is the change in total production cost that comes from making or producing one additional unit
- the marginal cost of production is the change in total sale cost that comes from making or producing one additional unit
10. What is an oligopoly?
- a state of limited competition, in which a market is shared by a small number of sellers NOT producers
- a state of limited competition, in which a market is shared by a small number of producers or sellers.
- a state of limited competition, in which a market is shared by a small number of producers NOT sellers