If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $3 and they are charging the profit-maximizing retail price of $9, what is wholesale price of the product?
A) $3 B) $6 C) $12 D) $9
B) $6
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A country is most likely to have a comparative advantage in the production of cars if:
A. it has a relative abundance in the natural resources needed to produce cars. B. it imports most of the raw materials necessary to produce cars. C. its citizens prefer driving cars to other forms of transportation. D. it has strict environmental protection laws governing automobile emissions.
In the 1970s, the U.S. inflation rate reached about
a. 7 percent per year. b. 10 percent per year. c. 14 percent per year. d. 20 percent per year.
Why are resources considered limited?
A. Entrepreneurs do not invest enough of them. B. There are not enough available so that everyone can have as much of them as desired. C. Everyone has them, and they change. D. There are so many that people must decide which ones to choose at any on
In a price leadership oligopoly model,
A. a cartel of leading firms determines price and industry output. B. the industry in consortium with the government determines price and output. C. one firm is the price leader and all other firms follow. D. the firms abandon a profit-maximizing goal.