The market power of a firm refers to its ability to
A) erect entry barriers in the industry.
B) make a profit even when other firms in the industry are making losses.
C) control its own output level while keeping its price the same as the prices charged by other firms.
D) affect the market price for its industry's output.
D
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Based on the model given, the cost-effective solution would arise if
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. each firm abates 20 units of pollution b. firm X abates 8 units, and firm Y abates 32 units c. firm Y does all the abating because its MAC is lower d. firm X abates 24 units, and firm Y abates 16 units e. none of the above
The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, at the equilibrium quantity, the marginal social benefit is
A) zero. B) $14,000. C) $19,000. D) $16,000.
The statistical discrepancy account:
a. accounts for services. b. accounts for gifts to foreigners. c. is included to ensure a balance between debits and credits in the capital account. d. estimates transactions that were omitted from the official reporting process. e. causes the net balance in the balance of payments to be negative.
The slope of a consumer's budget constraint is equal to: a. the consumer's income in the previous period divided by his income in the current period. b. the price of one good divided by the price of the other good
c. the ratio of the marginal utilities from two consecutive units consumed of a good. d. the price of one good divided by the present income of the consumer.