Which of the following statements applies to a monopolist but not to a perfectly competitive firm at their profit-maximizing outputs?
A) Marginal revenue is less than price.
B) Marginal revenue equals marginal cost.
C) Price equals marginal cost.
D) Average revenue equals average cost.
Answer: A
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Which of the following is true of perfect price discrimination?
a. A monopolist engages in perfect price discrimination when it cannot identify the minimum price the buyer is willing and able to pay. b. A monopolist engaging in perfect price discrimination targets only the groups that are price sensitive c. A monopolist engaging in perfect price discrimination produces the same output level as under perfect competition. d. A monopolist engages in perfect price discrimination when it is able to charge different prices to distinct customers based upon variances in willingness to pay.
Human capital is defined as the:
A. amount of workers a firm employs. B. amount of capital that is operated by workers in a firm. C. set of skills, knowledge, experience, and talent that determine the productivity of workers. D. amount of capital that is operated by workers in an industry.
Using game theory as an analytical tool, if one large nation imposes tariffs, the total cost is small; however, when several trading partners do the same:
a. the costs are even smaller. b. the costs balance out and there is no harm. c. the costs are the same but the potential gains are much smaller . d. then all nations gain.
As the firm in the diagram expands from plant size #1 to plant size #3, it experiences:
A. diminishing returns.
B. economies of scale.
C. diseconomies of scale.
D. constant costs.