Which of the following is a source of market power for a monopolist?
a. a firm may have a patent or copyright
b. a firm may control critical resources
c. a firm may have a government-authorized franchise
d. a firm may enjoy economies of scale
e. all of the above are sources of market power for a monopolist
e
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A firm will shut down in the short run if at the profit-maximizing quantity, ___________
A. total revenue is less than total cost B. marginal revenue is less than average fixed cost C. average total cost exceeds the market price D. marginal revenue is less than average variable cost
If the incremental capital output ratio is 3 and the ratio of saving to national income is 9%, according to the Harrod-Domar model the growth rate of income is
(a) zero. (b) 3%. (c) 6%. (d) 12%.
The marginal utility for a good is computed as
A. Total utility divided by quantity. B. Quantity divided by total utility. C. The change in total utility divided by the change in quantity. D. The change in quantity divided by total utility.
Measuring society's welfare as 2*CS + 0.5*PS
A) gives heavier weight to consumer gains. B) gives heavier weight to producer gains. C) treats the gains to consumers and producers equally. D) treats gains and losses with different weight.