Which supports the economist's claim that buyers don't compete against sellers?
A) Diners would rather have more restaurants to choose among.
B) Music buyers prefer having access to internet music stores compared to only the local music shop in town.
C) Car buyers prefer several dealerships in the region compared to only one.
D) Homebuyers prefer a larger selection of homes to a smaller one.
E) All of the above.
E
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If the multiplier is 5, the marginal propensity to consume must be 0.8
Indicate whether the statement is true or false
The Herfindahl-Hirschman Index is a measure of market power that focuses on:
A) the ratio of the price of a firm's product to the price elasticity of demand for the product. B) the share of the market controlled by the X largest firms in the market. C) the sum of the squares of the market share of each firm in an industry. D) the difference between a firm's product price and its marginal costs of production.
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is the profit from sales to each of the low-demand consumers?
B. $24.50 C. $33.00 D. $28.13
If a firm's long-run average cost curve is rising, it is experiencing:
a. a constant return to scale. b. economies of scale. c. diseconomies of scale. d. none of these.