Internal markets
A) are used to determine a transfer price.
B) are common in corporate America.
C) are part of a firm's vertical network.
D) all of these choices.
A
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Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
a. To sell more units, the monopolist must reduce price on all units sold. b. As the monopolist expands output, the average total cost will decline. c. The monopolist charges each consumer the highest possible price. d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
With a two-part tariff:
A. consumers simply pay a fixed fee if they buy anything at all. B. consumers pay a fixed fee if they buy anything at all, plus a separate per-unit price for each unit they buy. C. consumers pay a fixed fee if they buy anything at all, plus an annual fee for the right to purchase anything. D. consumers simply pay a fee for the right to buy anything.
As with many public goods, determining the appropriate level of government support for the production of general knowledge is difficult because
a. patents correct for an unknown portion of the externality. b. benefits are hard to measure. c. members of Congress are often experts in the sciences. d. the costs always exceed the benefits.
From a purely economic point of view, discrimination exists when
A. black teenagers earn more than white teenagers. B. all factors are earning average products. C. women earn less than men. D. equivalent factors earn different payments for equal contributions to output.