The ordering of market structures from most market power to least market power (where market power is the ability to set its own price) is:
a. monopoly, monopolistic competition, oligopoly, perfect competition.
b. perfect competition, monopolistic competition, oligopoly, monopoly.
c. oligopoly, monopoly, monopolistic competition, perfect competition.
d. monopoly, oligopoly, monopolistic competition, perfect competition.
e. monopoly, perfect competition, monopolistic competition, oligopoly.
d
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The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers
When Paul maximizes his profit, the difference between marginal cost and price is A) $0. B) $40. C) $60. D) $30. E) $20.
What is a discouraged worker? How do they affect the unemployment rate?
What will be an ideal response?
In the market for euros, the demand for euros (€) is
A) downward sloping, because at lower dollar prices for the euro, U.S. residents will buy more European goods and services. B) upward sloping, because at higher dollar prices for the euro, U.S. residents will buy more European goods and services. C) upward sloping, because at higher dollar prices for the euro, Europeans will buy more U.S. goods and services. D) horizontal, because dollar prices of euros and euro prices of dollars are directly related.
The equilibrium price of a good or service in a competitive market is
A. Lower than it should be because bankruptcies are common in competitive markets. B. Higher than the opportunity cost of producing the product. C. A reflection of the opportunity cost of producing the product. D. Higher than it should be because profits are included in the price.