With average cost pricing, the monopolist
A) earns no accounting profit.
B) produces where P = MC.
C) earns a normal rate of return for its shareholders.
D) does not cover opportunity costs.
Answer: C
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For there to be positive network externalities
A) there must be a direct size effect. B) there must be an indirect size effect. C) introductory prices are required. D) None of the above.
If the complicated technology costs $10million to develop, what is the expected gain from developing the thought activated software
a. $5million b. $10million c. $25million d. $50million
The price elasticity of supply of a good compares:
a. the percentage change in the price of the good with the percentage change in its quantity supplied. b. the percentage change in the quantity supplied of the good with the percentage change in its price. c. the percentage change in the quantity demanded of the good with the percentage change in its supply. d. the percentage change in the quantity supplied of the good with the percentage change in its demand.
Which of the following increases the likelihood that a group of sellers can increase profits as the result of collusion?
a. the presence of a large number of firms in the industry b. intense quality competition among firms c. low barriers to entry into the industry d. a stable demand for the product