________ mergers can lead to increased market power and, as a result, ________ the total surplus in the market.
A) Horizontal; increase
B) Vertical; increase
C) Vertical; decrease
D) Horizontal; decrease
D) Horizontal; decrease
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A single price monopolist has a demand curve: P = 500 - 50Q. It has the total cost curve: TC = 1000 + 100Q. If the firm is a profit maximizer or loss minimizer, what output and price should it plan for?
What will be an ideal response?
Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?
A) $10,000 B) $22,000 C) $32,000 D) $42,000
A major technological advance would be represented on a production possibilities curve by a(n):
a. movement off the production possibilities curve toward a point outside the curve. b. movement toward the curve from a point inside the curve. c. outward shift of the entire curve. d. movement to the left along the curve to a higher point.
There is a surplus in a market for a product when:
a. The increase in demand is greater than the decrease in supply b. Quantity supplied is less than quantity demanded c. Quantity demanded is less than quantity supplied d. The decrease in supply is greater than the increase in demand