In perfect competition, innovation is a means for a firm to
a. exit the market
b. establish brand loyalty
c. shift the ATC and MC curves upward
d. generate short-run economic profit
e. shift the market supply to the left
D
You might also like to view...
With respect to consumer behavior, the interest-rate channel of monetary policy transmission appears to be:
A. strong because people's decisions to purchase cars or houses depend on the short-term rates that policymakers can change. B. strong because it affects both spending and saving decisions. C. weak because people's decisions to purchase cars or houses depend more on short-term rates rather than long-term rates. D. weak because people's decisions to purchase cars or houses depend more on long-term rates rather than short-term rates.
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?
A. $400 B. $2400 C. $2500 D. $0
During economic slowdowns (recessions) the velocity of money tends to:
A. increase dramatically. B. increase slightly. C. decrease. D. remain relatively stable.
If we say that a price is too high to clear the market, we mean that:
A. quantity demanded exceeds quantity supplied. B. the equilibrium price is above the current price. C. quantity supplied exceeds quantity demanded. D. the price of the good is likely to rise.