Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades vertically integrates with the perfectly competitive distributors, the profit-maximizing quantity will be ________ the profit-maximizing quantity if they did not vertically integrate and the combined firm will earn ________ profit if
they did not vertically integrate.
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) the same as; greater
B) greater than; the same
C) the same as; the same
D) greater than; greater
C) the same as; the same
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For a given supply curve, the deadweight loss from the imposition of a tax is smaller if demand is more elastic
Indicate whether the statement is true or false
Suppose the Dow Jones Industrial Average has risen for three days in a row. According to the efficient markets theory of stock prices,
a. it will probably fall again tomorrow b. it will probably rise tomorrow to compensate for recent losses c. it is more likely to rise tomorrow than if it had fallen three days in a row d. it is just as likely to rise again tomorrow as if it had fallen three days in a row e. it will most likely remain unchanged tomorrow
Which of the following will discourage investment?
What will be an ideal response?
According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, which of the following statements is TRUE?
A. Holly will be willing to produce only good X and trade units of that good to Sherry as long as she receives less than 2.5 units of good Y in exchange. B. Holly will be willing to produce only good Y and trade units of that good to Sherry as long as she receives less than 0.4 unit of good X in exchange. C. Sherry will be willing to produce only good Y and trade units of that good to Holly as long has she receives less than 2 units of good X from her in exchange. D. Sherry will be willing to produce only good X and trade units of that good to Holly as long as she receives more than 0.5 units of good Y from her in exchange.