This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this were depicting an autarky economy, the equilibrium price would be:
A. $23
B. $11
C. $45
D. $16
Answer: D
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If a perfectly competitive firm is producing an output level for which MR equals $5, MC equals $6, and ATC equals $4, the firm
a. is earning a profit but should reduce output. b. is earning a profit and should increase output. c. is suffering a loss and should reduce output. d. is suffering a loss but should increase output.
Which of the following best describes the basic characteristics of noncooperative oligopoly models?
A) Managers make decisions based on the strategy they think their rivals will pursue. B) Managers attempt to deliberately mislead their rivals regarding the strategy they will pursue. C) When making decisions, managers basically ignore the mutual interdependence that exists among rivals. D) Managers refuse to negotiate with their rivals when it comes to such decisions as what price to charge.
As the uncertainty attached to a future payment ________, the expected value ________.
A. decreases; increases B. decreases; decreases C. increases; stays the same D. increases; becomes positive
The value of land is determined in part by what firms and households are willing to pay for it.
Answer the following statement true (T) or false (F)