In assessing the difference between monopoly performance and that of perfect competition, the best approach is to
A. measure the output of the monopolist and the output of the perfectly competitive firm.
B. measure the output of the monopolist and the output of the perfectly competitive industry.
C. measure the output purchased by consumers from the monopolist and from the perfectly competitive firm.
D. calculate the marginal cost of the monopolist and of the perfectly competitive firm.
Answer: B
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The gap between real GDP per person in Africa and real GDP per person in the United States has been
A) increasing. B) decreasing. C) remaining fairly constant. D) there is no gap in real GDP per person between Africa and the United States.
To escape adverse selection and elicit high quality experience goods buyers can
a. offer price premiums to new firms in the market b. seek out unbranded goods c. buy from generic storefronts that have leased temporary space d. secure warranties from warehouse retailers e. none of the above
A person committing to carpool with a friend to the gym for daily workouts is an example of:
A. status quo bias. B. the endowment effect. C. a commitment device. D. positive framing.
Public goods, like national defense, are usually funded through government because: a. no one cares about them, because they are public
b. it is prohibitively difficult to withhold national defense from someone unwilling to pay for it. c. they cost too much for private firms to produce them. d. they provide benefits only to individuals, and not firms.