Refer to the above figure. Suppose the government requires the natural monopolist to charge the efficient price. Then profits for the firm will be
A) zero.
B) losses equal to Q4 times distance f-g.
C) losses equal to Q3 times distance d-e.
D) profits equal to Q1 times distance a-b.
B
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Refer to Figure 13-11. What is the monopolistic competitor's profit maximizing price?
A) P1 B) P2 C) P3 D) P4
The bowed shape of the indifference curve reflects the consumer's
a. unwillingness to give up a good that he already has in large quantity. b. unwillingness to purchase a good that he already has in large quantity. c. greater willingness to give up a good that he already has in large quantity. d. greater willingness to purchase a good that he already has in large quantity.
Which country best reinforces the idea that the higher the real GDP per capita is, the more satisfied people are in that country?
a. India
b. China
c. Russia
d. Norway
Suppose in the city of Smugsburg, Blu-ray disc rental stores operate in a monopolistically competitive market. If the price of Blu-ray disc rentals in Smugsburg is currently equal to $5 per tape and the average cost of renting videos is $1 per Blu-ray disc, in the long run we expect the price of renting Blu-ray discs to:
A. increase. B. stay the same. C. decrease, and the average cost of Blu-ray disc rentals to increase. D. decrease, and the average cost of Blu-ray disc rentals to decrease.