Which of the following is true?
A. In Bertrand oligopoly each firm believes that its rivals will hold their output constant if it changes its output.
B. In oligopoly a change in marginal cost never has an effect on output or price.
C. In Cournot oligopoly firms produce an identical product at a constant marginal cost and engage in price competition.
D. None of the answers is correct.
Answer: D
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The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The total cost of a 2.5GHz computer is:
A. $200. B. $900. C. $1,000. D. $100.
A result of a positive externality in the production of a good is that
A) the price system will over-allocate resources to the production of that good or service. B) the price system will under-allocate resources to the production of that good or service. C) the market supply will be too high. D) the market demand will be too high.
Long-run equilibrium occurs when which of the following occur?
a. the actual price level equals the expected price level b. real GDP supplied equals potential output c. real GDP supplied equals real GDP demanded d. all of the above must occur to reach long-run equilibrium
Which furniture production process would have the highest production function?
A. Furniture made by handsaw and hammer B. Furniture made with power equipment C. Furniture with a mix of handmade and automated labor D. Furniture made in an automated furniture factory