In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm
Indicate whether the statement is true or false
FALSE
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When shopping for a ticket to see One Direction, her favorite band, in concert, Annie mistakenly purchased a non-refundable ticket to the off-off-off Broadway play "One Dissection," which she has no interest in seeing. Because the ticket cost her $100, Annie decides to think about it:
A. rationally and skips the play and spends another $100 on the concert ticket. B. rationally and sits through the play she has the ticket for, which is as awful as she thought it might be. C. irrationally and skips the play and spends another $100 on the concert ticket. D. None of these is a possible outcome.
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender. c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. d. In terms of spending potential, there is no difference because neither VCU2 nor VCU3 can be spent in the real world.
If prices of goods and services quickly adjust to demand shocks, then
A. Firms would find it difficult to produce at their optimal output rates B. Output rates would quickly adjust to changes in demand C. Firms would find it easier to produce at their optimal output rates D. The economy would experience severe short-run fluctuation
Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: SG = (T – TR) – G
What will be an ideal response?