Rexar, Inc is generating total economic profits. Considering this, which of the following statements is accurate?
a. Total revenue is equal to total costs at 0.
b. Total revenue is less than total costs at 0
c. Total revenue is greater than total costs at q*.
d. Total revenue is equal to total costs at q*
c. Total revenue is greater than total costs at q*.
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Keynesians disagree with the new classical model because
a. people are often irrational. b. wages are often negotiated through contracts, not auctions. c. people do not form expectations. d. wages are set to clear auction markets in both the short run and long run. e. all of the above
Refer to the payoff matrix below. If Best Lights and Bright Lights both know that the above game will be played exactly four times, which of the following will be the outcome of the game in each of the four periods?
A) Set High Price/Set High Price
B) Set Low Price/Set High Price
C) Set High Price/Set Low Price
D) Set Low Price/Set Low Price
A bilateral monopoly is characterized by a market with a single buyer and a single seller. Which factor is most likely to determine the market outcome in this situation?
A) Share of total costs that are fixed B) Degree of demand elasticity C) Degree of supply elasticity D) Bargaining power of the firms
When grocery stores issue special discount membership cards for shoppers effectively offering different prices based on quantities consumed, this is an example of
A) price discrimination. B) price differentiation. C) product differentiation. D) patent protection.