DVDs can be produced at a constant marginal cost of $10 per disk, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk
What are the Lerner indices for these two movies? A) Both equal one.
B) 2 and 3, respectively
C) 0.5 and 0.67, respectively
D) 1 and 2, respectively
C
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Environmental standards can be specified as
a. ambient standards d. all of the above b. performance-based standards e. (a) and (b) only c. technology-based standards
The costs to firms of changing prices are called menu costs
Indicate whether the statement is true or false
One advantage of issuing a bond to raise money rather than a stock is that issuing a bond allows a corporation to: a. preserve equity
b. generate funds. c. invest in capital. d. enable expansion.
As the number of firms in an oligopoly increases, the
a. price approaches marginal cost, and the quantity approaches the socially efficient level. b. price and quantity approach the monopoly levels. c. price effect exceeds the output effect. d. individual firms' profits increase.