Which of the following market structures is most similar to perfect competition?
A) Monopsony.
B) Monopolistic competition.
C) Oligopoly.
D) Monopoly.
B
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The government authorized $10 million to build bridges on an interstate. After $8 million were spent, serious engineering flaws were discovered. At that point, experts testified that the government must authorize another $10 million in funding to make the bridges safe, bringing the project's total cost to $20 million. The government should authorize the additional funding as long as the benefits from the completed bridges exceed
a. $10 million. b. $12 million. c. $18 million. d. $20 million.
Aunt Rose owned a dress shop on 81st Street and Broadway in Manhattan, selling limited-edition dresses to wealthy clients. One day, her landlord tripled her rent. What effect would this have on her dress price in the short run, assuming she is following the rules of profit maximization?
What will be an ideal response?
The formula for MC is
A) TVC/q. B) q/TVC. C) ?TVC/q. D) ?TVC/?q.
Suppose MPL = 0.5 ? (q/L) and MPK = 0.5 ? (q/K). In the long run, the firm will hire equal amounts of capital and labor
A) all of the time. B) only when w = r. C) only when w = 0.5 ? r. D) at no point in time.