The demand for good X has been estimated to be ln Qxd = 100 ? 2.5 ln PX + 4 ln PY + ln M. The advertising elasticity of good X is:
A. 0.0.
B. 1.0.
C. ?2.5.
D. 4.0.
Answer: A
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If a monopolistically competitive seller's marginal cost is $3.56, the firm will decrease its output if
A) its marginal revenue is less than $3.56. B) its marginal revenue is equal to $3.56. C) its marginal revenue is more than $3.56. D) its average total cost is equal to $4.00. E) Both answers B and D are correct.
Few firms in the United States are monopolies because
A) when a firm earns profits, other firms will enter its market. B) most products that firms produce have substitutes. C) few firms experience economies of scale. D) of antitrust laws.
If all firms in perfect competition have the same average revenue and pay the same price for inputs such as labor and materials, why do they not all have the same profit?
What will be an ideal response?
The employer who has the most unionized workers is the:
A. government. B. auto industry. C. airline industry. D. trucking industry.