If the two goods in an Edgeworth Box are perfect complements for one person -- and if the other person has the typical tastes that satisfy our usual assumptions (without being extreme in any way), any efficient allocation will be such that the first person has equal amounts of good 1 and good 2.
Answer the following statement true (T) or false (F)
True
Rationale:
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A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until
A) the original firm is driven into bankruptcy. B) the firm's demand curve is perfectly elastic. C) the firm exits the market. D) the firm's demand curve is tangent to its average total cost curve.
In general, a plaintiff and defendant should be expected to settle if the expected ________ from the litigation is ________ the expected ________.
A) gain; greater than; loss B) loss; greater than; gain C) loss; less than; gain D) loss; exactly one half of; gain
Schumpeter hypothesized that monopolies
a. do not maximize profits b. advertise extensively to keep out new entrants c. may charge a lower price than the price generated in a perfectly competitive market d. usually experience constant returns to scale e. have higher costs than smaller firms
The amount you pay for apps to download to your cell phone is an example of a(n) ________ cost
A) implicit B) opportunity C) explicit D) network