According to the graph shown, area A represents:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. profits earned in the short and long run.
B. profits earned in the short run.
C. profits earned in the long run.
D. consumer surplus.
B. profits earned in the short run.
You might also like to view...
Suppose you are the manager of a plastic recycle industry. In the industry, there are 5 large recycling firms and 20 small firms. You are aware that the large firms have a marginal benefit curve from industrywide advertising that lies above the small firms' marginal benefit curve. Which of the following payment plans is least likely to create discord across the participating firms?
A) Place the large firms into Group 1 and the small firms into Group 2 and require the firms in each respective group to pay the same amount with the firms in Group 1 paying a fee that is smaller than the fee paid by Group 2 firms. B) Have each firm pay the exact same fee. C) Have each firm pay the average marginal benefit of industrywide advertising across all firms. D) Place the large firms into Group 1 and the small firms into Group 2 and require the firms in each respective group to pay the same amount with the firms in Group 1 paying a fee that is greater than the fee paid by Group 2 firms.
The Stackelberg model of oligopoly assumes that each of the two producers will choose prices instead of quantities and neither will change price in response to the other's decision
Indicate whether the statement is true or false
In a given year, U.S. nominal GDP was $2,784 billion and the GDP chain price index for that year is 60.4. Real GDP is:
A. $1,682 billion. B. $4,609 billion. C. $3,889 billion. D. $4,000 billion.
In insurance markets, moral hazard occurs when the behavior of
A) the insured person changes in a way that raises costs for the insurer, since the insured person no longer bears the full costs of that behavior. B) the insurer changes in a way that raises costs for the insured person, since the insurer no longer bears the full costs of that behavior. C) the insured person changes in a way that eliminates rising health care costs for the insurer, since the insured person no longer bears the full costs of that behavior. D) the insured person has an incentive to under consume medical services, simply because the insured person no longer bears the full cost of medical services.