To sell an extra unit of output, a perfectly competitive firm ________, and an imperfectly competitive firm ________.
A. must hope the market price falls; must lower its price
B. must lower its price; must lower its price
C. need not alter its price; must lower its price
D. need not alter its price; need not alter its price
Answer: C
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Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a sealed-bid first-price auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; $10 million
B) #5; 9.5 million
C) #5; a value less than $10 million and greater than $9.5 million
D) #3; a value less than $10 million and greater than $9.5 million
Two products that are usually consumed jointly would be referred to as
a. substitutes. b. complements. c. inferior goods. d. unrelated goods.
Which of the following statements is correct?
a. The total income in the economy that remains after paying for consumption and government purchases is called private saving. b. The sum of private saving and national saving is called public saving. c. For a closed economy, the sum of private saving and public saving must equal investment. d. For a closed economy, the sum of consumption, national saving, and taxes must equal GDP.
The marginal factor cost facing each employer in a competitive labor market is greater than the market wage rate.
Answer the following statement true (T) or false (F)