In a sequential contestable market game
A) a small number of firms can behave like firms in perfect competition.
B) the outcome is always a monopoly equilibrium.
C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits.
D) a firm that enters the market first is protected from potential entrants by natural barriers.
A
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Deadweight loss and market failure are created when a market produces
A) either more or less than the efficient quantity. B) more than the efficient quantity but not when less than the efficient quantity is produced. C) less than the efficient quantity but not when more than the efficient quantity is produced. D) the efficient quantity. E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.
In the simple Keynesian model, equilibrium exists when
a. actual investment equals realized investment. b. exports equal imports. c. savings is equal to government spending plus desired investment minus taxes. d. national product is equal to consumption minus desired investment plus government spending. e. None of the above
For a monopoly, the value of the next worker equals
A) MR ? MPL. B) (price + the effect of increased output on price) ? MPL. C) P(1 + 1/e) ? MPL D) All of the above.
The Sherman Antitrust Act
A. called for the establishment of the Federal Trade Commission. B. made tying contracts illegal and banned price discrimination. C. limited mergers that would substantially limit competition. D. declared monopoly and trade restraints illegal.