A baker of chocolate chip cookies is likely to have a ______________ price elasticity of supply than does the seller of rare baseball cards due to ______________.
A. more elastic; the availability of inputs
B. less elastic; the availability of inputs
C. less elastic; a shorter adjustment time
D. less elastic; a more flexible production process
A. more elastic; the availability of inputs
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The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates because some
a. monopolies experience strong economies of scale b. monopolists spend resources to secure and maintain their monopoly c. monopolists may purposely keep price lower than its profit-maximizing level, in order to increase barriers to entry d. monopolists' markets are contestable e. monopolists' prices and profits are regulated by the government
?Because trade across markets creates winners and losers,the overall surplus in the loser's market is diminished.
Answer the following statement true (T) or false (F)
Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance.Fuel$4,000Maintenance$12,000Weapons$6,000Bribes$3,000 In the long run, we would expect Lando to:
A. continue smuggling since his economic profit from smuggling is positive. B. join the Rebel Alliance since his economic profit from smuggling is negative. C. continue smuggling since his accounting profit from smuggling is positive. D. join the Rebel Alliance since his accounting profit from smuggling is negative.
Monopolistically competitive firms use advertising exclusively to inform customers about the real differences between their products and their competitors' products.
Answer the following statement true (T) or false (F)