Which of the following is false?
A. Profit is maximized when MR = MC for both monopolies and perfect competition firms
B. Both monopolies and perfect competition firms earn zero profit in the long run
C. At equilibrium, price is higher than marginal cost for monopolies but not for competitive firms
D. Monopolies profit maximize and perfect competitive firms output maximize
Answer: D
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Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs
Indicate whether the statement is true or false
What shape is the production possibilities curve usually expected to exhibit?
a. Upward-sloping. b. Bowed out. c. Bowed in. d. Straight line. e. U-shaped.
Suppose $X is the present value of $Y to be received next year. If you have $X and let it earn interest at r percent annually, how much money do you expect to have after one year?
a. $Y b. $Y/(1 + r) c. $Y(1 + r) d. $X/(1 + r) e. $X/r
Answer the following statement true (T) or false (F)
1) Homogeneous oligopolists tend to advertise more than do differentiated oligopolists. 2) Oligopolists use limit pricing to maximize short-run profits. 3) Both collusive and noncollusive oligopoly models suggest that price changes will be relatively infrequent in these types of industries. 4) Collusion among firms always involves formal agreements. 5) Firms are more likely to collude when the economy is in a recession.