Answer the following statement true (T) or false (F)
1) In a purely competitive industry competition centers more on advertising and sales promotion
than on price.
2) Price and marginal revenue are identical for an individual purely competitive seller.
3) The demand curve for a purely competitive industry is perfectly elastic, but the demand curves
faced by individual firms in such an industry are downsloping.
4) Marginal revenue is the addition to total revenue resulting from the sale of one more unit of
output.
1) F
2) T
3) F
4) T
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Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient. B) All consumer surplus goes to the monopoly. C) Deadweight loss is created. D) There is a redistribution of consumer surplus to the monopoly.
Foreign direct investment is mainly refers to foreign securities investments that do not involve management control.
Answer the following statement true (T) or false (F)
Equilibrium for the monopolist occurs where P > MR > MC > Average total cost.
Answer the following statement true (T) or false (F)
Explain why the social demand curve for a public good is the vertical sum of the demand curves of each individual
What will be an ideal response?