Market power guarantees profit
A) True, which is why firm's locate as far away from each other as possible.
B) False, market power guarantees price greater than marginal cost.
C) True, market power guarantees price greater than average cost.
D) False, market power guarantees price equal to average cost.
B
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How is the Solow residual measured? What problems arise in its measurement when resource utilization varies over the business cycle? What implications do these measurement issues have for evidence supporting the RBC model?
What will be an ideal response?
A large decrease in oil prices is an example of:
A. a favorable inflation shock. B. excessive aggregate spending. C. inflation inertia. D. an adverse inflation shock
An intended goal of expansionary fiscal policy and an easing of monetary policy is
A. an increase in the price level. B. an increase in the level of aggregate output. C. an increase in interest rates. D. the equalization of the distribution of income.
What is the highest price the monopolist could charge and still sell fish?