If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $2 and they are paying the profit-maximizing wholesale price of $8, what is the retail price of the product?
A) $6 B) $8 C) $2 D) $10
D) $10
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Refer to Figure 2-7. Assume that in response to changing consumer demands, Apple cuts back on the production of self-driving automobiles and increases its production of traditional automobiles. This strategy is best represented by the
A) movement from K to L in Graph C. B) movement from F to E in Graph A. C) movement from G to J in Graph B. D) movement from J to H in Graph B.
Demand for U.S. dollars by speculators is likely to increase if the dollar is expected to depreciate in the near future
a. True b. False Indicate whether the statement is true or false
When private benefits are less than social benefits, it means that:
A. no externality of any kind is present in the market. B. positive externalities are present in the market. C. negative externalities are not present in the market. D. positive externalities are not present in the market.
One thing oligopolists must do in order to determine their optimal strategy is
A. produce a unique product which has no close substitutes. B. anticipate the reaction of their customers to their strategy. C. ignore the reaction of their customers to their strategy. D. ignore the reaction of their rivals to their strategy.