What is the difference between a monopoly's marginal revenue curve and a perfect competitor's marginal revenue curve?
What will be an ideal response?
A monopoly's marginal revenue curve lies entirely below its market demand curve and is downward sloping, but a perfect competitor's marginal revenue curve is the same as its demand curve which is horizontal at the prevailing market price.
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If prejudice originates with employers, market forces work to reduce discrimination and lower wage differences between the favored and unfavored groups
a. True b. False
A market failure occurs when
a. a market equilibrium is economically inefficient b. a market equilibrium is economically efficient c. perfect competition maximizes the sum of consumer and producer surplus d. crime is not completely eliminated e. involuntary exchanges are not completely eliminated
We know that in the long run, perfectly competitive firms produce where MC = MR and end up making zero economic profit. The profit-maximizing output level for a monopolist is where
a. price is maximized b. quantity is maximized c. ATC curve is minimized d. maximum efficiency is achieved e. MR = MC
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. Should you go to the concert instead of working Saturday?
A. Yes, the benefit of going to the concert is more than the cost. B. No, because there are no benefits of going to the concert. C. No, the benefit of going to the concert is less than the cost. D. Yes, the benefit of going to the concert is equal to the cost.