If a market changes from oligopoly to perfect competition, then as a result
A. Prices should rise in the long run.
B. Profitability should rise in the long run.
C. Fewer resources will be allocated to the market.
D. Output should increase in the long run.
Answer: D
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How does economies of scale improve second-degree price discrimination?
A. Firms have increasing opportunity costs and therefore must sell more goods at higher prices to make up the extra costs. B. ATC decreases and then increases which affects the cost to firms. C. People have increasing marginal benefit as ATC decreases. D. ATC decreases as output increases which allows a firm to charge lower prices at different output levels.
Social Security is structured as a pay-as-you-go system, meaning that payments to current retirees are paid
A) from taxes collected from retired workers. B) as long as the government has funds available. C) from taxes collected from current workers. D) by the Federal Reserve from newly-printed money.
A farmer has 100 acres of land on which he can grow soybeans or corn. An acre of land yields 200 bushels of soybeans or 100 bushels of corn. The above figure refers to the farmer's
A) production possibilities curve. B) substitution options curve. C) demand curve. D) opportunity cost curve.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker makes three transactions, what is his total profit?
a. $12 b. $15 c. $18 d. $21