When price is above marginal cost, selling one more unit at the current price will increase profit. This concept is known as the
a. income effect.
b. price effect.
c. output effect.
d. cartel effect.
c
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In a labor-market pooling equilibrium with high-skill and low-skill workers and where a costly educational degree is used as a signaling device,
A) the high-skill workers' wage is larger than the low-skill workers' wage. B) the low-skill workers' wage is zero. C) the high- and low-skill workers receive the same wage. D) the high-skill workers' wage is equal to the low-skill workers' wage plus the cost of obtaining a degree.
If four firms comprise the entire golf club industry, the market would be
a. competitive. b. characterized by interdependence of firms. c. a duopoly. d. a monopoly.
A perfectly competitive market is a market that meets the conditions of
A. few buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market B. many buyers and sellers, all firms selling differentiated products, and no barriers to new firms entering the market C. many buyers and sellers, all firms selling identical products, and significant barriers to new firms entering the market D. many buyers and sellers, all firms selling identical products, and no barriers to new firms entering the market
Exhibit 3-8 Demand and Supply Data for Video Games ? Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 ? In Exhibit 3-8, at any market price of video games above $50, a(n) ______________ would result, causing price to __________.
A. excess demand; rise B. excess supply; rise C. excess demand; fall D. excess supply; fall