If regulators required firms in monopolistically competitive markets to set price equal to marginal cost,
a. firms would respond by lowering their costs.
b. firms would require a subsidy to stay in business
c. new firms that enter the market would operate at efficient scale.
d. the most efficient firms would not be affected.
b
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Which of the following is not true about your nominal income?
A. It is the same as your real income in times of high inflation. B. It is measured in current dollars. C. It is the amount of money you receive during a given time period. D. It is not an accurate measure of purchasing power.
Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?
A. Steam engine B. Automobile C. Telephone D. Electric motor
Assume that we are concerned about the existence of one firm (monopoly) in a market because of the potential for economic profits. If, however, there is free entry and exit, should our concerns change? Why or why not?
What will be an ideal response?
What is the solution to a simultaneous-move game when both sides do not have dominant strategies?
What will be an ideal response?