Monopolistically competitive firms are unable to affect the market price of their output, but are able to control the price of their own output.
Answer the following statement true (T) or false (F)
True
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Arthur buys a new cell phone for $150. He receives consumer surplus of $150 from the purchase. What value does Arthur place on his cell phone?
A) $0 B) $150 C) $225 D) $300
An oligopolist cannot use the MR = MC rule to find its equilibrium output level because
a. oligopolists do not face stable demand curves for their output b. oligopolists do not try to maximize profits in the long run c. it is too difficult to estimate marginal cost d. the rule applies only in perfect competition e. the minimum efficient scale exceeds total quantity demanded
A collusion occurs when: a. firms act together to increase industry output. b. firms act together to decrease industry price. c. firms act together to earn normal profits
d. firms act together to increase social welfare.
The relationship between the quantity of inputs and the quantity of outputs is called a:
A. production function. B. profit function. C. resource function. D. cost function.