A perfect-price-discriminating equilibrium maximizes
A) consumer surplus.
B) the associated deadweight loss.
C) the market inefficiency.
D) total welfare.
D
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If a firm has no ______ costs, then the profit from shutting down is zero.
A. fixed B. variable C. opportunity D. sunk
On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is
a. excludable, but nonrival in consumption. b. not excludable, but rival in consumption. c. excludable and rival in consumption. d. not excludable and nonrival in consumption.
The major source of production in the economy comes from:
A. sole proprietorships. B. conglomerates. C. partnerships. D. corporations.
Economists use game theory to analyze oligopolies because
A) real markets are too complicated to analyze without using games. B) it is more enjoyable for economists and students to learn by playing games. C) game theory helps us to understand why interactions among firms are crucial in determining profitable business strategies. D) game theory is useful in understanding the actions of firms that are price takers.