When firms do not collude in a game-playing market environment, firms end up with low prices and high output levels
Indicate whether the statement is true or false
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In the above figure, if the market produces the efficient amount of purses, then consumer surplus equals triangle
A) abc. B) bcd. C) adc. D) cgf.
The long-run exit rule is to exit the industry if:
A. P > AVC. B. P < AVC. C. P < ATC. D. P > ATC.
For an employer biased against African Americans, the discrimination coefficient d:
A. will decrease if the employer becomes more prejudiced against African Americans. B. must equal the actual ratio of African-American to white wage rates. C. measures the amount an employer is willing to pay to hire a white over hiring an African- American worker. D. varies inversely with the actual African-American-white wage ratio.
Refer to Scenario 7.2 below to answer the question(s) that follow. SCENARIO 7.2: You are the owner and only employee of a company that sets odds for sporting events. Last year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a return of $20,000 a year. Refer to Scenario 7.2. A yearly normal return for your company is
A. $20,000. B. $40,000. C. $60,000. D. $100,000.