Economists believe that oligopolists like American Airlines and the Kellogg Company:
a. make price and output decisions without regard to what their competitors might do
b. have no perceptible influence on the market price, but choose output where marginal revenue equals the marginal cost of production.
c. carefully watch and anticipate the moves of their competitors.
d. have no control over market but produce output to the point where demand equal marginal cost.
c
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Producer surplus
A) increases if market price rises and the supply curve does not shift. B) decreases if market price rises and the supply curve does not shift. C) is equal to the maximum price consumers are willing to pay. D) is the same as the marginal cost. E) always must equal consumer surplus.
You are thinking about buying a house. You find one you like that costs $200,000 . You learn that your bank will give you a mortgage for $160,000 and that you would have to use all of your savings to make the down payment of $40,000
You calculate that the mortgage payments, property taxes, insurance, maintenance, and utilities would total $950 per month. Is $950 the cost of owning the house? What important factor(s) have you left out of your calculation of the cost of ownership?
Which of the following indicates an input is being overused relative to the optimal level?
A. MRP = P of input. B. MRP > P of input. C. MRP < P of input. D. MPP > P of output.
A person's tax liability refers to
a. the percentage of income that a person must pay in taxes. b. the amount of tax a person owes to the government. c. the amount of tax the government is required to refund to each person. d. deductions that can be legally subtracted from a person's income each year.