Which of the following is a characteristic of monopolistic competition?
a. ownership of a key resource by a single firm
b. free entry
c. identical product
d. patents
b
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Suppose Factory A emits 15,000 units of "Yuck" monthly, Factory B emits 30,000 units, and Factory C emits 45,000 units. Also suppose A's cost of reducing the emission is $1 per unit, B's cost is $2 per unit, and C's cost is $3 per unit
If the EPA prohibits any factory from emitting more than 15,000 units of yuck per month, what would be the total cleanup cost? A) $15,000 B) $40,000 C) $45,000 D) $90,000 E) $120,000
Suppose many new brands start selling coffee in an economy, increasing the options that consumers have for coffee. This will result in: a. a decrease in the elasticity of demand for every brand of coffee. b. an increase in the elasticity of demand for every brand of coffee. c. zero elasticity of demand for every brand of coffee
d. an infinite elasticity of demand for every brand of coffee.
If people wished to hold a quantity of money equal to 80% of nominal GDP, the velocity of money would be
A) 1.00. B) 1.25. C) 1.50. D) 1.75.
Suppose you cannot buy information that completely removes the uncertainty from a business decision that you face, but you could buy information that reduces the degree of uncertainty
Based on the discussion in this chapter, the value of this partial information could be determined as the: A) expected outcome under complete certainty minus the expected outcome under the partial information case. B) expected outcome under the partially uncertain case minus the expected outcome under the completely uncertain case. C) utility of the partially certain case minus the utility of the completely certain case. D) We cannot determine the value of information under partial certainty.