The profit-maximizing price of the monopolist compared to the perfectly competitive industry in the above figure are, respectively
A. P1 and P3.
B. P1 and P2.
C. P1 and P5.
D. P2 and P5.
Answer: A
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In the real world
A) many firms charge different prices based on consumers' willingness to pay. B) all sellers charge one price set by the government. C) profitable sellers will set one price based on the average elasticity of demand of buyers. D) all sellers charge one price equal to the marginal cost of production.
Financial markets are
A) institutions that make loans to borrowers and obtain funds from savers. B) organized exchanges where securities and financial instruments are bought and sold. C) organized exchanges where currencies are traded. D) institutions that regulate financial instruments.
Economic rent applies to
A) land only and nothing else. B) real property only. C) all resources. D) any resource in fixed supply.
A merger wave can be set off
a. by government restrictions that prevent firms from reaching their minimum efficient scale b. if the federal government raises corporate income taxes. c. if the federal government lowers corporate income taxes d. if minimum efficient scale falls e. by some change in a market, such as a shift in market demand.