An oligopoly with a dominant price leader will produce a level of output between that which would prevail under competition and that which a monopolist would choose in the same industry.
Answer the following statement true (T) or false (F)
True
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Households' expenditure on goods and services are sources of revenue for the firms
a. True b. False Indicate whether the statement is true or false
If marginal profit is zero, then average profit is at a maximum
a. True b. False Indicate whether the statement is true or false
Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks to make sure their underwriting standards meet strict standards. b. Their mandate is to develop a secondary market in U.S. mortgages. c. Their mandate is to develop a secondary market in global mortgage markets. d. Their mandate is to develop a primary market in the U.S. mortgage market. e. None of the above.
A firm has the following production relationship between labor and output, for a fixed capital stock.
According to the above table, what is the marginal product of the 4th unit of labor?
A. 3 B. 5 C. 6 D. 7