Compared to the purely competitive firm, a pure monopoly:
A. will always become competitive in the long run because positive economic profits will induce competitors into the market.
B. is efficient from society's perspective because it has big plants and it uses the newest possible production technology.
C. is able to use barriers to entry and maintain positive economic profits in the long run.
D. produces an equal amount of output but charges higher prices to cover all costs in the market.
Answer: C
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Fill in the blank: Information is a ________ good
A) free B) scarce C) futile D) non-economic
If some monopolistically competitive firms exit their market after suffering short-run losses, the demand curves of remaining firms will shift to the right
Indicate whether the statement is true or false
A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket
A) equaled $160 in 1983. B) rose 160% from the cost of the market basket in the base year. C) rose 60% from the cost of the market basket in the base year. D) equaled $160 in 1996.
A flat fee pricing system for MSW services
Use the following forany or all of Questions 11 through 13 below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston. MSC = 1.5 + 1.25Q MSB = 30 – 2.5Q MEC= 0.75Q MEB= 0 whereQ is the number of trash containers serviced per household per month. a. ignores the positively sloped MPC of MSW services b. causes an underallocation of resources to MSW services c. means that demanders pay nothing for MSW services d. provides an incentive for waste reduction