An exclusion contract
A) is a form of entry deferral.
B) gives a firm the right to be the exclusive provider of a good in a particular market.
C) may not always be profitable for the incumbent.
D) All of the above.
D
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The equation below gives the degree of economies of scope (SC):
SC = (C(Q1 ) + C(Q2 ) - C(Q1,Q2 )) / C(Q1,Q2 ) where C(Q1 ) is the cost of producing output Q1, C(Q2 ) is the cost of producing output Q2, and C(Q1,Q2 ) is the joint cost of producing both outputs. If SC is negative: A) there are neither economies nor diseconomies of scope. B) there are economies of scope. C) there are diseconomies of scope. D) there are both economies and diseconomies of scope.
Leverage refers to a firm's
a. output to employment ratio. b. revenue to cost ratio. c. debt to equity ratio. d. common stock to preferred stock ratio.
Suppose a market is in equilibrium and then a price floor is established below the equilibrium price. Which of the following will happen?
a. quantity demanded will increase b. a surplus will develop c. a shortage will develop d. the quantity sold will rise e. the market will remain in equilibrium
?Suppose the marginal utility of a unit of good x = MUx, the marginal utility of a unit of good y = MUy, Px= price of a unit of good x, and Py= price of a unit of a goo?d y. A utility-maximizing consumer who purchases two goods, x and y, allocates her budget in such a way that _____.
a. ?MUx = MUy b. ?TUx/Py = TUy/Px c. ?MUx/Px = MUy/Py d. ?TUx = TUy e. ?MUx/Py = MUy/Px