A company that rewards its salespeople based on the number of sales made can expect
a. Higher sales prices
b. Lower sales prices
c. No sales
d. All of the above
b
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If the MC of polluting decreased, then what would happen to the optimal level of pollution?
A. Stay the same B. Unsure C. Increase D. Decrease
In monopolistic competition, there is inefficiency because price is greater than marginal cost. What brings about this inefficiency?
A) high concentration, as indicated by the large concentration ratio B) product differentiation C) freedom of entry and exit D) marginal cost rises as more output is produced E) the fact there are many firms in the market
Under Federal Trade Commission merger guidelines, an industry with a Herfindahl-Hirschman index (HHI) of 800 points is considered
A) competitive. B) moderately concentrated. C) concentrated. D) a monopoly.
Doctors demand large salaries in part because
a. they are forbidden by U.S. law from receiving economic rent. b. most doctors have backward-bending labor supply curves. c. they participate in the secondary labor market. d. they have made significant investments in human capital.