If a commodity’s price is above its marginal cost, the market will tend to produce too much of the good.
Answer the following statement true (T) or false (F)
False
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Neoclassical growth theory predicts that
A) population growth rates slow as employment opportunities for women increase. B) population explosions decrease real GDP per person. C) economic growth leads to technological change. D) the pursuit of profit creates perpetual growth.
Answer the following statements true (T) or false (F)
1) In the situation in which consumers have nonidentical demands in two-part pricing, the profit-maximizing user fee is equal to the marginal cost of use. 2) In the situation in which consumers have nonidentical demands in two-part pricing, a firm's profit is always increased if it adjusts the access fee and user fee to sell to all consumers. 3) In all-or-nothing offers, the products packaged together are all the same. 4) If Pasta Meals sells its pasta and pasta sauce in a package and sells the products individually, this is an example of pure bundling. 5) Commodity bundling can increase a firm's profit and lower their transaction costs.
Managers of profit centers are usually given a lot of discretion because
a. They always do an excellent job b. They rarely do a good job c. The company can never judge their performance d. It is relatively easy to tie management pay to division performance
A profit-maximizing monopolist will continue expanding output as long as
a. marginal revenue exceeds marginal cost. b. marginal revenue is positive. c. the cost of producing an additional unit exceeds the marginal revenue derived from the unit. d. economic profit is more than zero.