Consider the same monopoly situation as in the previous question. The deadweight loss (compared to a single firm behaving as if it were perfectly competitive) is about
a. 667
b. 333
c. 1,000
d. 1,333
a
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The aggregate supply curve (short run) is upward-sloping because ________.
A. wages and other resource prices are flexible upward but inflexible downward B. the price level is flexible upward but inflexible downward C. wages and other resource prices match changes in the price level D. per-unit production costs rise as the economy moves toward and beyond its full-employment real output
The figure above shows the market supply and market demand curves for pizza. If the market is at its equilibrium, what area in the graph above represents:
a) consumer surplus? b) producer surplus?
The figure above shows the demand curve (D) faced by Visual, Inc, a cable TV company, and the firm's marginal revenue (MR), marginal cost (MC), and average cost (LRAC) curves
If Visual is regulated according to the social interest theory, it will serve ________ million households and set a price of ________ per household per month. A) 2; $12 B) 3; $24 C) 4; $12 D) 2; $36
Suppose an executive has a choice between two salary compensation packages. One guarantees him an income of $250,000 a year
The other would give allow him to earn an extra $50,000 a year if profits rise by 2% but receive a pay cut of $50,000 f they don't. Let's assume that there is a 50% chance that the profits could rise by 2% or more and a 50% chance that they won't. Explain why he might accept the $250,000 guaranteed salary. What would have to be true for him to accept the second salary compensation package?