Gilligan runs the only dry-cleaning business on a desert isle. If the cost of cleaning fluid falls, he can increase profit by
a. raising price
b. charging the highest price he can
c. using less cleaning fluid
d. lowering price
e. charging a price equal to marginal cost
D
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Most of the debates in the U.S. Congress center on
A) efficiency concerns. B) equity concerns. C) both efficiency and equity equally. D) market inefficiency.
If the price of a good falls, the marginal utility per dollar spent on that good:
a. also falls. b. stays the same. c. rises. d. will rise or fall, depending on the consumer. e. remains unchanged, provided the consumer buys no more of the good.
One of the difficulties in implementing monetary policy is the time it takes:
A. to pass new monetary policy once the Fed has decided action is needed. B. monetary policy to have an effect in the economy once enacted. C. to enact monetary policy once the Fed has decided action is needed. D. to get approval from the Congress to implement the policy.
What are the characteristics of oligopoly?
What will be an ideal response?