In the short run, monopolistically competitive firms:
A. can earn positive economic profits by acting like a monopolist.
B. can earn positive economic profits by acting like a perfectly competitive firm.
C. will earn zero economic profits by acting like a monopolist.
D. will earn zero economic profits by acting like a perfectly competitive firm.
A. can earn positive economic profits by acting like a monopolist.
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If the good in the table above is a public good and Pat and all are the only members of society, then the efficient quantity to produce is
A) 2 units. B) 3 units. C) 4 units. D) 5 units.
The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the period's consumer price index
Calculate the real value of the stock for each time period using year 5 as the base year. If you purchased $1,000 worth of AOL Corporation in year 1, what has happened to the purchasing power of your original $1,000 investment when you sell the stock in year 5? Year AOL CPI 1996 $4.00 147.8 1997 $3.84 155.3 1998 $7.00 163.0 1999 $37.00 165.4 2000 $70.00 172.1
The difference in total surplus between the socially efficient level of production and the monopolist's level of production is
a. offset by regulatory revenues. b. called a deadweight loss. c. equal to the monopolist's profit. d. Both b and c are correct.
The basic argument for income inequality is that:
A. the very rich establish consumption patterns that are desirable for the rest of society to emulate. B. the rich buy luxury goods that soon become affordable to everyone else because of economies of scale. C. income inequality is essential to maintain incentives to produce. D. inequality undermines incentives and tends to reduce the size of the national income.