When comparing the market price of an input in a market characterized by bilateral monopoly to a perfectly competitive price
A) the bilateral monopoly price is always higher than the competitive price.
B) there is no difference; the bilateral monopoly price equals the competitive price.
C) the bilateral monopoly price is always less than the competitive price.
D) the bilateral monopoly price can be higher than, lower than, or equal to the competitive price.
D
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
If we think of good governance as a public good created by well-informed voters, we can predict that it will be:
A. oversupplied. B. undersupplied. C. in market equilibrium, if left unchecked. D. in market equilibrium, despite market interference.
Most of the money that we pay to foreigners to finance our current accounts deficit
A. flows back to the U.S. in investment funds. B. stays abroad where it circulates as currency. C. ends up in the hands of drug dealers. D. is used by foreign governments as reserves.
Suppose the consumer price index was 184 in 2009 and 198.17 in 2010 . The nominal interest rate during this period was 5.8 percent. What was the real interest rate during this period?
a. 0.4 percent b. 1.2 percent c. –1.9 percent d. –2.6 percent