A monopoly displays productive efficiency because it produces at the lowest possible average total cost
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Caseload reduction should be viewed as the sole measure of poverty performance
Indicate whether the statement is true or false
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a required reserve ratio of 20 percent, the banking system can increase the volume of loans by
A. $80,000. B. $100,000. C. $20,000. D. $0.
If there is a decrease in demand for lettuce, we would expect:
A. both the price and quantity sold to increase. B. both the price and quantity sold to decrease. C. the price to decrease and the quantity sold to increase. D. the price to increase and the quantity sold to decrease.
Consider a Cournot duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = 2Qi. Based on this information, firm 1 and 2's reaction functions are:
A. r1(Q2) = 24.5 ? 0.5Q1 and r2(Q1) = 24.5 ? 0.5Q2. B. Q1 = 49 ? 0.25Q2 and Q2 = 49 ? 0.25Q1. C. r1(Q2) = 24.5 ? 0.5Q2 and r2(Q1) = 24.5 ? 0.5Q1. D. Q1 = 49 ? 0.5Q2 and Q2 = 49 ? 0.5Q1.