Refer to the table above. What is the total revenue when the monopolist charges a price of $3?
A) $1,050
B) $1,350
C) $1,750
D) $2,750
B
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If there are eight firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________ and the market is considered to be ________.
A) 1,250; moderately competitive B) 2,800; moderately competitive C) 1,250; competitive D) 2,800; competitive
In Example 6.5 in the book, the authors use the observed production data from the U.S. carpet industry to show that small firms likely have constant returns to scale and that large firms likely have increasing returns to scale
Are returns to scale in this industry likely to continue increasing as these firms become even larger? A) Yes, the marginal products of labor and capital are known to be positive at all levels of output in the U.S. carpet industry, which implies continued increasing returns to scale. B) Yes, increasing returns are always observed in other countries that produce carpeting on large scale. C) No, the authors predict that returns to scale in carpet production will likely decline at some point. D) The authors do not provide any comments on this issue.
A simple way of describing the social cost of monopoly is to say that it
A) produces too much. B) makes too much money. C) has too much political power. D) restricts output and charges a higher price than a perfectly competitive firm.
A decrease in quantity demanded is given by a(n):
a. downward shift of the demand curve. b. upward shift of the demand curve. c. downward movement to the right along the demand curve. d. upward movement to the left along the demand curve. e. downward shift of both demand and supply curves.