Explain why gasoline stations across the street from each other with large signs displaying their prices may "legally" jointly set monopoly prices
What will be an ideal response?
A gasoline station posts its prices on a large sign. The other station can view the prices. The two stations may be able to set monopoly prices without an explicit agreement. These firms may tacitly collude.
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Blu-ray disc players, iPhones, and hybrid cars are generally considered to be ________ goods
A) service B) nondurable C) durable D) intermediate
Which of the following is NOT a barrier to entry for a monopoly?
A) economies of scale for the relevant range of output B) a patent on the product being sold C) the ability to charge a price that is above marginal cost D) receiving a public franchise
A change that increases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and shifts it to the ________.
A) increases; left B) decreases; left C) decreases; right D) increases; right
A major force leading the U.S. economy to full employment after the Great Depression was
a. higher interest rates. b. higher reserve requirements. c. government spending for World War II. d. automobile production.