A monopoly is considered more desirable to society than a perfectly competitive firm because a monopoly has the incentive to pursue research and development.
Answer the following statement true (T) or false (F)
False
Although monopolists have a clear financial advantage in pursuing research and development activities, they have no clear incentive to do so. Research and development aren't necessarily required for profitable survival. In fact, research and development that make existing plants and equipment technologically obsolete run counter to a monopolist's vested interest and so may actually be suppressed.
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In game theory, behavior that results in cooperation as long as the other players continue to cooperate, is referred to as
A) nice behavior. B) tit-for-tat strategic behavior. C) simple behavior. D) opportunistic behavior.
One type of regulatory practice common for public utilities is setting a price for consumers based on the average cost of production plus the normal rate of profit expected; this is known as what kind of regulation?
a. Cost-plus regulation b. Price cap regulation c. Bundling regulation d. Antitrust regulation
Willingness to pay
a. measures the value that a buyer places on a good. b. is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d. is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
You deposit X dollars into a 3–year certificate of deposit that pays 4.75 percent annual interest. At the end of the 3 years you have $4,229.70 . What number of dollars, X, did you deposit?
a. $3,680.00 b. $3,712.77 c. $3,750.00 d. $3,772.57