For the monopolistically competitive firm,
a. competition is blocked by barriers to entry
b. limit pricing can forestall competition indefinitely
c. marginal revenue is less than the product's price
d. price discrimination is a key tool
e. marginal revenue is equal to the product's price
C
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Refer to the scenario above. Which of the following is likely to be true in this case?
A) A unique Nash equilibrium will occur. B) A socially inefficient equilibrium will occur. C) Multiple equilibria will occur. D) A dominant strategy equilibrium will occur.
A brand name may contribute to oligopolists' economic profit by
a. shifting the demand curve leftward b. shifting the supply curve leftward c. overcoming economies of scale d. acting as a barrier to entry e. reducing advertising costs
If a person has an absolute advantage in some activity, she must have a comparative advantage in that activity as well.
Answer the following statement true (T) or false (F)
Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180If columns 1 and 3 are this firm's demand schedule, the profit-maximizing level of output will be
A. 6 units. B. 3 units. C. 4 units. D. 5 units.