Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).According to the Application, the reason why the consumer surplus still increases as cable prices rise after satellite TV service is introduced in an area with cable TV service, is:
A. the quality of services improves and is larger than the increase in the price of cable services.
B. the quality of services improves and is smaller than the increase in the price of cable services.
C. the tax revenues that the government receives is larger than the price increase.
D. the tax revenues that the government receives is smaller than the price increase.
Answer: A
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The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:
A. output gap. B. trade deficit. C. budget deficit. D. full-employment rate.
In the scenario above, the market is
A) a natural duopoly. B) a natural oligopoly with three firms. C) a natural monopoly. D) monopolistically competitive.
Discuss the impact of the restoration of convertibility in 1958
What will be an ideal response?
The length of the short-run is the same for all firms
Indicate whether the statement is true or false