The fast-food industry is not considered perfectly competitive because
A. there is a small number of dominant firms.
B. the firm's products are not homogeneous.
C. there is a very large number of firms.
D. entry and exit are strictly regulated by the government.
Answer: B
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A consumer's utility-maximizing combination of goods is given by the bundle that corresponds to the highest point on his indifference curve
Indicate whether the statement is true or false
According to the U.S. Robinson - Patman Act of? 1936, price discrimination
A. may be used to drive rivals out of business. B. is always illegal. C. can only be justified if the price discrimination is due to actual cost differences. D. is legal unless it harms competition.
A potential entrant knows that it faces a (inverse) residual demand curve given by P = 50 ? 4Q. While the entrant does not know the inverse market demand, it does know that the incumbent committed to producing 150 units. Using this information, which of the following equations best summarizes the inverse market demand curve?
A. P = 200 ? Q B. P = 200 ? 4Q C. P = 150 ? 4Q D. None of the statements are correct.
Dead capital is
A. useful only if employed in a labor-intensive production process. B. unlikely to have any productive use. C. useful only if employed in a capital-intensive production process. D. unlikely to be applied to its most efficient use.