Managers in oligopoly firms must
A) eliminate any barriers to entry if they hope to make short-run profits.
B) advertise heavily in order to differentiate their product.
C) anticipate the reaction of rival firms.
D) establish many varieties of their products to cover the spectrum of consumer tastes.
C
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Which of the following is not "means-tested"?
a. Temporary Assistance for Needy Families (TANF) b. welfare programs c. the Food Stamp program d. Social Security payments to a retiree e. free and reduced price school lunches for the poor
If a firm's managers inappropriately decide to operate where total revenue is maximized, they will continue to increase output
a. as long as marginal revenue exceeds marginal cost b. as long as marginal cost exceeds marginal revenue c. as long as the total revenue curve is above zero d. as long as the marginal revenue curve is above the horizontal axis e. until the total revenue curve intersects the total cost curve
In general, in the short run, the supply curve of a purely competitive firm is:
A. the rising portion of the average-total-cost (ATC) curve. B. the rising portion of the marginal cost curve above the AVC curve. C. identical to the marginal cost curve. D. a horizontal line equal to the market price.
Figure 3-17
Refer to . When the price rises from P1 to P2, consumer surplus
a.
increases by an amount equal to A.
b.
decreases by an amount equal to B + C.
c.
increases by an amount equal to B + C.
d.
decreases by an amount equal to C.
v