Suppose Toor's beer is sold in a monopolistically competitive market. In the long run we expect the price of Toor's beer to:
A. equal the average cost of production of Toor's beer.
B. exceed the average cost of production of Toor's beer.
C. equal the marginal cost of production for Toor's beer.
D. equal the minimum possible average cost of producing Toor's beer.
Answer: A
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Suppose two neighborhoods (A and B) have identical housing, but neighborhood A has a strictly enforced deed restriction that prohibits homeowners from parking junk cars in the front yard
If houses in neighborhood A sell for $105,000 and houses in neighborhood B sell for $100,000, how would an economist value the external cost of visible junk cars, per house? A) $205,000 B) $105,000 C) $100,000 D) $5,000 E) None of the above answers is correct.
The Organization of Petroleum Exporting Countries is an example of: a. a price leadership system
b. a trade group whose members have yet to influence the world price of oil, despite repeated attempts to collude. c. a successful monopoly. d. a periodically successful cartel.
In an oligopolistic industry, there are many small firms that produce identical goods at identical costs
a. True b. False Indicate whether the statement is true or false
In the early stages of resource extraction, we would expect
a. Rising prices and increased production b. Rising prices and decreased production c. Rising prices and stable production d. Falling prices and increased production e. Falling prices and decreased production Feedback