The 1910–1914 period was chosen as a benchmark period for determining parity prices because that was when
a. there was the greatest number of farms
b. corn prices were the highest
c. farmers believed that farm and nonfarm prices were such that farms goods tradedequal value for equal value with nonfarm goods
d. the exchange standard was most biased in favor of farmers
e. farm productivity was the lowest
C
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In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4 units is
A) $1.20. B) $2.00. C) $5.00. D) $15.00.
The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1945 and two of the competing banks have considered merging. Because the merger would raise the HHI by 155 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger as long as the HHI did not increase by more than 155 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1875.
Monopolies will tend to overproduce goods and charge a higher price than the competitive price.
Answer the following statement true (T) or false (F)
For a firm that sells an information product, the long-run equilibrium exists at a point where
A. price equals average variable cost. B. price equals average fixed cost. C. price equals marginal cost. D. price equals average total cost.