Compared to a perfectly competitive firm, a monopolist
A. is less likely to advertise.
B. will, according to Schumpeter, invest fewer resources in research and development.
C. usually produces an inefficiently small level of output.
D. is less likely to face government regulation.
Answer: C
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Which of the following is a reason why airline yield management is an effective method to increase revenue?
A) because airlines have successfully induced customers to reveal their resources and preferences by offering them different versions of the product such as business class and coach plane tickets B) because airlines have a monopoly in long-distance carriage C) because a ticket is a contract to transport a specific person, and is not transferable D) because airlines have invested heavily in developing computer models that identify optimal pricing strategies in the various market segments
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. A decrease in domestic interest rates b. An increase in foreign interest rates c. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices d. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation
The business cycle dating committee determines when peaks and troughs occur by looking at
A. mainly at real GDP figures. B. mainly at the unemployment rate. C. data from our economy and comparing it to data from other major nations. D. mainly at employment, industrial production, personal income, and manufacturing and trade revenue.
Figure 33.2 illustrates Lorenz curves for four different economies. For which economy would the lowest 20 percent of families receive the smallest share of total income?
A. A. B. B. C. C. D. D.