Market power refers to
A) the ability of a firm to sell at a lower price than rival sellers.
B) the ability of a firm to advertise its product and succeed in selling more output.
C) the ability of a firm to charge a price higher than the marginal cost of production.
D) the ability of consumers to dictate what products should be produced.
C
You might also like to view...
Average total cost decreases with an increase in output because:
A) the total variable cost decreases with an increase in output. B) the average fixed cost decreases with an increase in output. C) the marginal cost of production increases with an increase in output. D) diminishing marginal returns sets in after a particular level of production.
Proponents of zero inflation argue that a successful program to reduce inflation
a. eventually reduces inflation expectations. b. eventually raises real interest rates. c. permanently decreases output. d. permanently raises unemployment.
The regional Federal Reserve bank presidents are:
A. selected by the Federal Reserve Board of Directors. B. responsible for ensuring that money supply can adequately meet the demand for money. C. are responsible for overseeing the day-to-day actions of the regional banks. D. allowed to serve no more than two consecutive four-year terms.
A firm has a total cost function of C(Q) = 75 + 25Q1/2. The firm experiences:
A. diseconomies of scale. B. economies of scale. C. constant returns to scale. D. All of the statements associated with this question are correct.