For a monopolist, marginal revenue is
a. equal to price, as it is for a perfectly competitive firm.
b. less than price, as it is for a perfectly competitive firm.
c. equal to price, whereas marginal revenue is less than price for a perfectly competitive firm.
d. less than price, whereas marginal revenue is equal to price for a perfectly competitive firm.
d
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What is pricing to market? Where is it most prevalent?
What will be an ideal response?
The Federal Reserve Bank of New York
A) executes open market operations. B) sets reserve requirements. C) establishes the prime rate. D) establishes the three-month Treasury bill rate.
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below.
Suppose QRS-TV enters into an agreement with P-TV that gives QRS-TV the exclusive right to air a reality show during this time slot. QRS-TV would be willing to pay P-TV ________ in order to persuade P-TV to enter into this agreement.
A. more than $10 million B. nothing C. no more than $5 million D. no more than $10 million
Refer to Figure 12-7. If the market price is P3 the firm
A) will earn enough revenue to cover its variable costs but not its fixed costs. B) will break even. C) will make a profit. D) will produce a quantity of Q1.