Figure 11-9
In Figure 11-9, which of the following is true?
a.
MC = P
b.
MC = MR
c.
MU > MR
d.
MU < MC
c
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Why are some insurance companies interested in programs for nationwide disaster insurance for floods, earthquakes, and hurricanes?
What will be an ideal response?
Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?
A) Economic profits can be positive since firms have some degree of monopoly power. B) Economic profits will be positive since the firm has a downward sloping demand curve. C) Economic profits will tend towards zero since positive profits will attract new firms into the industry. D) Economic profits can be negative since there is so much competition in the market.
If demand for Rolls Royce automobiles rises in an area where incomes have increased, this tells us that a Rolls Royce is
A) a normal good. B) an inferior good. C) a complementary good. D) a substitute good.
Japanese employers tend to hire employees right out of college and train them for a lifetime job with the company. Over time they found that women often, but not always, married after a few years and left the company so they were not good training investments. Based on this experience, and despite the exceptions, firms stopped hiring any women for jobs that require substantial training. This
practice is called a. economic discrimination. b. statistical discrimination. c. compensating differentials. d. the substitution effect.