If we produce one more bottle of water:
a) we incur a marginal cost.
b) the marginal social benefit from bottled water increases.
c) the price must rise.
d) we must move away from equilibrium
e) we act efficiently.
Ans: a) we incur a marginal cost.
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One characteristic of monopolistic competition is that it has
A) many firms producing a slightly differentiated product. B) many firms producing identical goods. C) one firm producing a unique good. D) a few firms producing a slightly differentiated product. E) large barriers to entry.
Given the situation in the matrix shown, the two firms are likely to collude only if:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. it is a repeated game.
B. they will only make the decision once.
C. The two firms will always choose to compete.
D. they are the only two firms with dominant market share.
Which of the following is definitely true when nominal GDP increases?
A. The standard of living improves. B. The amount of output increases. C. The value of output increases. D. The production possibilities curve shifts outward.
Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn Total Utilityfrom Multiplex Tickets Total Utilityfrom Video Rentals Total Utilityfrom Popcorn 1 movie (30 utils) 1 video (14 utils) 1 bag (8 utils) 2 movies (54 utils) 2 videos (24 utils) 2 bags (13 utils) 3 movies (72 utils) 3 videos (30 utils) 3 bags (15 utils) 4 movies (84 utils) 4 videos (32 utils) 4 bags (16 utils) In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. What combination of goods will give the consumer the most utility?
A. 1 movie, 3 videos, and no popcorn. B. 1 movie, 2 videos, and 2 bags of popcorn. C. 1 movie, 1 video, and 4 bags of popcorn. D. 2 movies, no videos, and no bags of popcorn.