Which of the following is true for a firm that is a monopolist?
a. the firm will make an economic profit in the short run.
b. the firm will produce a smaller quantity of output than what would be best from the viewpoint of ideal economic efficiency.
c. the additional revenue that can be generated from an increase in output will exceed the firm's price.
d. the firm can charge whatever it wants for its product since consumers have no alternatives.
B
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Answer the following statement(s) true (T) or false (F)
1. In a contestable market with room for many firms, industry output will be the same as in a successful cartel. 2. The Cournot oligopoly model is based on the assumption that firms treat their rivals' output as fixed and given. 3. Firms' total output is higher in the Cournot oligopoly model than in the Bertrand oligopoly model. 4. In both competition and monopolistic competition, free entry and exit guarantee that the industry's output is produced at the least possible cost. 5. Social welfare would be increased if a monopolistically competitive industry were replaced with a competitive industry.
As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
A) structural unemployment. B) frictional unemployment. C) cyclical unemployment. D) changes in the business cycle. E) avoidable unemployment.
A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss
Indicate whether the statement is true or false
If the firm can only afford developing one of the software, which one would it rather develop (based on expected profit/gain)
a. The simple voice-activated software b. The complicated thought-activated software c. Neither of the software d. Need more information