A monopolistic competitor is similar to a monopolist in that
A. both produce the output at which long-run average cost is at a minimum.
B. both have market power.
C. both earn positive economic profit in the long run.
D. a and b
E. all of the above
Answer: B
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Adkins Air is the only seller offering service directly from Milwaukee to Greensboro. The market is contestable. Thus the Nash Equilibrium for a game between Adkins Air and a potential entrant is when the potential entrant
A) enters and Adkins earns a normal profit. B) enters and Adkins earns an economic profit. C) does not enter and Adkins earns a normal profit. D) does not enter and Adkins earns an economic profit.
In terms of imports to the colonies, ______ and ______ were the top two trading partners
a. the United Kingdom; Africa b. Southern Europe; the West Indies c. the West Indies; the United Kingdom d. the United kingdom; Southern Europe.
The growth of international trade has helped to ______ the productivity of U.S. workers as a whole, and thus helped to ________ the average level of wages.
a. lower; lower b. raise; raise c. raise; lower d. lower; raise
In Figure 34.5, the effect of a well-enforced anti-scalping law is to 
Figure 34.5
A. increase the welfare of consumers and decrease the welfare of scalpers. B. reduce the welfare of consumers and scalpers by GFB. C. increase the welfare of consumers by ABC. D. decrease the welfare of scalpers by AFGC.