According to William Shepherd's examination of competitive trends in the U.S. economy, a market is effectively competitive if
a. the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other
b. the top four firms supply more than 60 percent of the market, have stable market shares, and compete with each other
c. the industry exhibits low concentration, few barriers to entry, and little or no collusion
d. the industry exhibits low concentration and little or no collusion, despite significant barriers to entry
e. the dominant firm has two close rivals
C
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Refer to Figure 3.1. If Homer confesses to the crime and Marge does not, what is Homer's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
The marginal revenue product curve is:
a. c and d are correct. b. c and e are correct. c. given by the marginal product curve multiplied by the price of the good. d. the marginal contribution of an additional worker to firm's revenues. e. the change in total cost that results from employing an additional worker.
Bolivia had a smaller budget deficit in 2003 than in 2002 . Other things the same, we would expect this reduction in the budget deficit to have
a. increased both interest rates and investment. b. increased interest rates and decreased investment. c. decreased interest rates and increased investment. d. decreased both interest rates and investment.
For a monopolist with a downward-sloping demand curve,
A. when the price is equal to zero, marginal revenue is equal to zero. B. the coefficient of price elasticity of demand is zero. C. as price increases, marginal revenue decreases. D. as price decreases, marginal revenue decreases.