Which of the following is the best example of a perfectly competitive market?
A.) The automobile industry.
B.) The soft drink industry.
C.) Dairy farming.
D.) Fast-food restaurants
C.) Dairy farming.
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Fiat money has
A) a great intrinsic value that is independent of its use as money. B) little to no intrinsic value and is authorized by the central bank or governmental body. C) value, because it can be redeemed for gold by the central bank. D) little to no intrinsic value but is backed by the quantity of gold held by the central bank.
The sign of the cross-price elasticity tells us whether two commodities are complements or substitutes, but the size of this elasticity measure tells us
a. how the supply side of the market reacts to changes in demand b. whether the government should regulate the two markets c. which technology producers use d. how closely the two goods are related e. whether or not excess profits can be made in either market
If both a buyer and a seller have the same information, they are said to have symmetric information.
Answer the following statement true (T) or false (F)
At his current level of output, a monopolist has an MR of $10, an MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve upward sloping, the monopolist
a. is producing his profit-maximizing level of output. b. could increase his profit by increasing his output. c. could increase his profit by increasing his price. d. should exit the market if he has positive fixed cost.