Ramsey prices for a budget-constrained (breakeven) multi-product firm will allow the same welfare loss per dollar of contribution to fixed costs for every product
Indicate whether the statement is true or false
T Optimal prices for the multi-product firm, which must exceed marginal costs in order to yield enough contribution to cover fixed cost, should be adjusted until the contribution to fixed cost per unit of revenue is the same for each product. If this was not true, an adjustment in prices could allow more contribution with less welfare loss. Prices that reach that standard of equal contribution per dollar of revenue are Ramsey prices.
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The market prices of existing bonds are
A) inversely related to the interest rate. B) stated in terms of the interest rate. C) not related to the interest rate. D) directly related to the interest rate.
How does a command-and-control policy differ from a market-based policy?
What will be an ideal response?
Which of the following statements is generally true?
A) Rivalry is less the larger the number of firms in an industry. B) The smaller the number of firms in an industry, the greater the rivalry. C) The degree of rivalry in an industry is largely independent of the number of firms. D) The larger the number of firms in an industry, the greater the rivalry.
Marginal revenue is
a. the change in total revenue divided by total output b. total revenue divided by total output c. total revenue minus total cost then divided by total output d. the change in total revenue divided by the change in price of output e. the change in total revenue divided by the change in total output