Price discrimination by a monopolist is less effective if the
A) good can be resold.
B) good has no substitutes.
C) monopolist can identify buyers by willingness to pay.
D) good cannot be resold.
A
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The competitive firm's supply curve is equal to
A) its marginal cost curve. B) the portion of its marginal cost curve that lies above AC. C) the portion of its marginal cost curve that lies above AVC. D) the portion of its marginal cost curve that lies above AFC.
In 2004 , the pizza market in Charleston, Illinois, was perfectly competitive. But almost overnight, one firm bought up all its competitors to become the monopoly in the Charleston pizza market. As a result,
a. less pizza was produced and price increased b. more pizza was produced and price increased c. less pizza was produced and price decreased d. more pizza was produced and price decreased e. quantity and price remained the same but profit increased
The similarity between markets for common resources and markets with externalities is that:
A. generally we get an oversupply at market. B. the price that competitive firms charge does not capture the true costs and benefits of consumption. C. the equilibrium quantity is too high in terms of society. D. government involvement is needed to reach an efficient outcome.
If there is a negative externality involved in producing good X, then
A. engaging in international trade will solve the inefficiency. B. a subsidy to the producer of good X can correct the inefficiency involved. C. the production possibility curve will be too steeply sloped toward good X. D. None of these is true.