To maximize profit, a pure monopolist must:
A. maximize its total revenue.
B. maximize the difference between marginal revenue and marginal cost.
C. maximize the difference between total revenue and total cost.
D. produce where average total cost is at a minimum.
Answer: C
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Refer to Game Matrix III. Which of the following is a property of this game?
Game Matrix III
The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.
a. Both firms have dominant strategies.
b. There is no pure strategy Nash equilibrium.
c. There is a Nash equilibrium and it is Pareto optimal.
d. There is a Nash equilibrium and it is not Pareto optimal.
The domestic opportunity cost of producing 100 barrels of chemicals in Germany is 1 ton of steel. In France, the domestic opportunity cost of producing 100 barrels of chemicals is 2 tons of steel. In this case
A. Germany has an absolute advantage in the production of chemicals. B. France has an absolute advantage in the production of chemicals. C. France has a comparative advantage in the production of chemicals. D. Germany has a comparative advantage in the production of chemicals.
In a perfectly competitive market in the short run, as the market demand increases, the firms ________ their output and their economic profit ________
A) increase; increases B) increase; decreases C) decrease; decreases D) decrease; increases
A firm in a perfectly competitive market structure
a. will advertise to shift its demand curve to the right b. has a demand curve for its good that is perfectly vertical c. cannot influence the price d. has a demand curve for its good that is downward sloping e. has a demand curve for its good that is upward sloping