Value added is the difference between the value of good as they leave a stage of production and cost of the goods as they entered that stage of production.
Answer the following statement true (T) or false (F)
True
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The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). At the current price of 35ยข per minute, consumer surplus equals
A) $301. B) $924.50. C) $1,225.50. D) $1,250.
Refer to the table below. If the senior manager learns that either a Good or Poor market will exist when the drug is introduced to the market, which drug should the senior manager not pursue?
The senior manager of Rx Pharmaceuticals needs to decide which of three drugs the company should consider developing. The estimated profit for each of the drugs differs depending on the market conditions when the respective drugs are introduced to the market. The above table summarizes the estimated profit for each drug under each of the three market conditions; Good, Fair, and Poor.
A) Drug A
B) Drug B
C) Drug C
D) none of the drugs
Why don't some firms in monopolistic competition earn losses in the long run?
A) The firms have enough monopoly power to ensure they always earn profits. B) Free entry allows enough firms to remain in the market and maintain the critical mass of firms required to attract customers. C) Free exit implies that any unprofitable firms leave the market in the long run. D) In the long run, firms will build enough brand loyalty among customers to ensure a profitable level of sales.
Market power refers to the
a. firm's ability to control the industry's supply and demand b. joining of firms into a cartel c. firm's ability to control market price d. market's ability to control a firm's price e. industry's ability to control market price