A firm is more likely to adopt multiple brand names for the same product when the good is a non-durable
Indicate whether the statement is true or false
False. Non-durables are frequently purchased (such as bread). The consumer can try different brands over time to determine if any quality differences exist. In the case of durable goods (such as a car or household appliance), the consumer is stuck with her purchase for a period of time; there is less opportunity to compare her experiences with different brand names.
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In a contestable market
A) the HHI is usually quite low. B) the firm in the market usually earns a large economic profit. C) the firm in the market may play an entry-deterrence game. D) there are high barriers to entry.
If a monopolist's price is $50 at the output where marginal revenue equals marginal cost and average total cost is $43, then the average profit is $7
Indicate whether the statement is true or false
In the case of a short-run production function:
A) all of the inputs are variable. B) the amount of labor employed is held constant. C) at least one of the inputs is fixed. D) all of the inputs are fixed.
An office worker who loses her job because she does not have the necessary computer skills is, ceteris paribus:
A. Frictionally unemployed. B. Seasonally unemployed. C. Cyclically unemployed. D. Structurally unemployed.