Refer to the above figure. Suppose this industry was perfectly competitive and then merged into one monopolistic firm. The monopoly would
A) raise price from P1 to P2.
B) reduce output from Q3 to Q1.
C) reduce output from Q2 to Q1 and raise price from P3 to P4.
D) raise price from P1 to P4.
C
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If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good, the income elasticity of demand equals ________ and the good is ________ good
A) 1/2; a normal B) -1/2; an inferior C) 2; a normal D) -2; a normal E) -5; an inferior
Refer to the scenario above. You should use ________ to make your decision
A) backward induction B) forward induction C) mixed strategies D) your dominant strategy
If a wage profile is relatively flat, wage compression may be present
Indicate whether the statement is true or false
A college education is a(n)
a. investment in human capital. b. form of innovation. c. public good. d. mediated settlement.