If a firm in a perfectly competitive industry raises its price above market price,
A. profit will increase.
B. sales will drop to zero.
C. demand curves will become downward sloping.
D. total revenue for the firm will increase.
Answer: B
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To compare the conclusions of a model with what actually happens, historical data are entered into the model as ________
A) endogenous variables B) exogenous variables C) equations D) predictions E) policies
A historical note: The founder of the U.S. Steel Corporation was
a. J. P. Morgan b. John Rockefeller c. Thomas Edison d. Andrew Carnegie e. Herbert Spencer
The two primary factors determining monopoly market power are the firm's: a. revenue and the size of its customer base
b. variable cost curve and fixed cost structure. c. demand curve and cost structure. d. demand curve and the level of wealth within its market.
The actual burden of a tax is determined primarily by
a. the elasticities of demand and supply. b. the legal (or statutory) assignment of the tax. c. the number of exchanges that are eliminated from the market as a result of the tax. d. none of the above.