A monopolistic competitor exits the industry in the long run if ________

A) total revenue exceeds total cost
B) total costs exceed total revenue
C) marginal revenue exceeds marginal cost
D) marginal revenue equals marginal cost


B

Economics

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Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Q = 20,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year?

A. $12.50 B. $25.00 C. $37.50 D. $50.00

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Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is

A) q1 = (a - bq2 )/2b. B) q1 = (a - 2bq2 )/2b. C) q1 = a/b. D) q1 = a/2b.

Economics

Over the last few decades, the U.S. Gini coefficient has

a. become negative b. increased moderately c. decreased moderately d. decreased dramatically e. fallen from 1.50 to less than 0.25

Economics

The degree to which rent controls affect the market for apartments depends on

A. supply elasticity. B. the intent of the lawmakers. C. demand elasticity. D. A) and C)

Economics