After deregulation airline prices _____ and the prices charged by long distance trucking firms _____.
Fill in the blank(s) with the appropriate word(s).
fell; fell
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The market for wheat can be described at perfectly competitive while the market for pizza is better described as monopolistically competitive
Which of the following is a NOT a similarity between perfectly competitive and monopolistically competitive firms? A) Both monopolistically competitive and perfectly competitive firms produce at their efficient scale. B) Both monopolistically competitive and perfectly competitive firms are free to enter and exit the market. C) Both monopolistically competitive and perfectly competitive firms have a small market share. D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.
The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?
A) No, the recession will have no impact on my ability to get a job or my future income. B) No, the recession will most likely be short-lived and I can get a job after it is over. C) Yes, the recession will lower income in my field permanently. D) Yes, the recession will ensure that you will never find a job as a programmer.
List three reasons why a firm might experience economies of scale
What will be an ideal response?
In the Cournot model, if the products are differentiated,
A) this reduces the pressure of one firm's decisions on the other. B) this increases the pressure of one firm's decisions on the other. C) there is no difference between this model and one with homogeneous goods. D) marginal costs are necessarily different.