A form of oligopoly in which ________ is called the price-leadership model.
A. a dominant firm sets the price and all smaller firms in the industry follow the dominant firm's pricing policy
B. all firms collude when setting the price
C. price is set by government regulation
D. price is determined by the market
Answer: A
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For a typical firm, the portion of the AC curve that is downward-sloping is because production
A. exhibits decreasing returns to scale. B. creates innovative technological progress. C. economies of scale. D. exhibits rising total product.
The Interstate Commerce Commission regulated the trucking industry for many years in order to
a. shield the railroads from competition in trucking b. prevent economic profits from being made c. regulate the truck monopoly in the interests of the consumer d. prevent economies of scale from occurring e. punish truck drivers for unionizing
Total benefits minus total cost equals:
A. gross benefit. B. marginal benefit. C. net benefit. D. incremental benefit.
Suppose you run a pizza shop and currently have two employees. If you hire a third employee, your output of pizzas per day rises from 55 to 65. If you hire a fourth employee, output rises to 80 per day. A fifth and sixth employee would cause output to rise to 90 and 95 per day, respectively. Pick the correct statement:
A. Diminishing returns set have not yet set in because output is still increases. B. Diminishing returns set in with the hiring of the sixth worker. C. Diminishing returns set in with the hiring of the fourth worker. D. Diminishing returns set in with the hiring of the fifth worker.