Firms in a monopolistically competitive market will produce where the difference between TR and TC are maximized
a. True
b. False
A
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What are the characteristics of a market that allow a monopolist to successfully price discriminate between groups?
What will be an ideal response?
Which of the following would be the best example of consumer surplus?
a. Shaniqua does not get cell-phone service because she feels that it is worth less than the $30 a month fee. b. Nicolas pays $8 for a haircut that is worth $10 to him. c. Diego buys a house for $104,000 . the maximum amount that he would be willing to pay for it. d. Isabella purchases a book for $20 and uses a credit card to pay for it.
Which of the following makes the U.S. market more attractive to foreign buyers?
a. depreciation of the dollar b. contractionary monetary policy by the Fed c. increase in price of U.S. goods d. increase in U.S. interest rates
The imposition of a new excise tax will
A) increase equilibrium price and increase equilibrium quantity. B) increase equilibrium price and decrease equilibrium quantity. C) decrease equilibrium price and increase equilibrium quantity. D) decrease equilibrium price and decrease equilibrium quantity.