In long-run equilibrium for a monopolistically competitive firm, the firm's ________ curve is just tangent to its average total cost curve.
A. demand
B. supply
C. marginal revenue
D. marginal cost
Answer: A
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GDP per capita means GDP
A) divided by the capital stock. B) adjusted for inflation. C) in real terms. D) per person.
Answer the following statements true (T) or false (F)
1) Managers of the dairy farmers association can eliminate the industrywide free-rider problem using the law that makes checkoff payments mandatory. 2) In regard to industrywide advertising, creating small groups of participating firms increases the opportunity for free-riding. 3) Resale price maintenance is only profitable if consumers' valuation of the product-specific service exceeds the retailer's marginal cost of providing it. 4) As a manager, if you are aware that your competitors are bribing officials, your firm does not face negative legal outcomes if you report the bribery. 5) As a manager of a firm operating a foreign market, the FCPA does not allow you to make small facilitating payments, but the U.K. Bribery Act does.
Which of the following correctly describes the winner's curse?
a. When firms are bidding on an asset of uncertain value, the winning bid is not the average bid, which may be the most reliable estimate of the asset's true value. Instead the winning bid is the lowest bid, and so is the most pessimistic estimate of the asset's value. b. When firms are bidding on an asset of uncertain value, the winning bid is not the average bid, which may be the most reliable estimate of the asset's true value. Instead the winning bid is the highest bid, and so is the most optimistic estimate of the asset's value. c. When firms are bidding on an asset of uncertain value, the winning bid is the average bid, and thus is the most reliable estimate of the asset's value. The winner is cursed because only the most pessimistic bidder has a chance to earn economic rents on the asset. d. When firms are bidding on an asset of uncertain value, the winning bid is not the highest bid, which may be the most reliable estimate of the asset's true value. Instead the winning bid is the average bid, and so is the most optimistic estimate of the asset's value.
The income elasticity of demand is (mathematically)
A. the percentage change in the portion of a person's budget that they will spend on a good divided by the percentage change in income. B. the percentage change in quantity demanded divided by the percentage change in income. C. the percentage change in income divided by the percentage change in price. D. the percentage change in quantity demanded divided by the percentage change in price.