Why do property rights increase research and development (R & D) for many companies?
A. Property rights do not increase research and development.
B. Property rights reduce the risk of others stealing your work.
C. Property rights incentivize buyers to purchase the company's products.
D. Property rights always increase profits, so companies have more money to spend on R & D.
Answer: B
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If the several oligopolistic firms that comprise an industry behave collusively, the resulting price and output will most likely resemble those of:
A. bilateral monopoly. B. pure monopoly. C. monopolistic competition. D. pure competition.
Suppose Jerry consumes three hamburgers at McDonald's one evening. He figured the last one was just worth the price he paid for it. If the hamburgers he buys have a price of $1, then
a. he earned no consumer surplus b. he would have earned consumer surplus if he had eaten one more hamburger c. he was irrational d. he may have earned consumer surplus on the first two hamburgers e. he earned $1 consumer surplus on the third hamburger alone
Which of the following statements about markets and industries is TRUE?
A.A market includes buyers but not sellers. B. An industry includes buyers but not sellers. C.A market includes sellers but not buyers. D. An industry includes sellers but not buyers.
If price exceeds marginal cost, we say that a firm receives
a. Extraction surplus b. User costs c. Consumer surplus d. Royalty payments e. Resource rents