Suppose the firm or firms in the market for Good A face a downward-sloping demand curve, maximize profit by producing the quantity at which marginal revenue equals marginal cost, set the price higher than the marginal cost, and break even in long run equilibrium. Which one of the following market structures most likely exists for Good A?
A. Perfectly competition.
B. Monopoly.
C. Monopolistic competition.
D. Oligopoly.
Answer: C
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The first labor unions in the United States were
A) public-sector unions. B) industrial unions. C) guilds. D) craft unions.
A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm's average variable cost
a. True b. False Indicate whether the statement is true or false
Danzon and Furukawa (2003) argue that:
a. the provision of government-provided free care increases the availability of newly introduced drugs to everyone covered by the government plan. b. generic competition in the U.S. has not done much to lower drug prices or spending. c. price controls in the U.S. would lower drug prices without affecting the overall availability of branded drugs or lowering incentives for future drug development. d. pharmaceutical price differences across countries are roughly in line with differences in per capita GDP, supporting the predictions of Ramsey pricing practices.
Which of the following statements is consistent with an increase in supply?
A) The price of labor input has increased. B) There has been an advance in technology. C) Consumers' incomes have increased. D) The market price has decreased.