In the above figure, the distance between A and B represents this monopoly firm's
A. average profit per unit.
B. average cost per unit.
C. total profit.
D. total revenue.
Answer: A
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Some popular reality television programs follow people who buy the contents of abandoned storage lockers at public auctions. In most cases, several storeage lockers are sold in sequence during a particular auction
Occassionally, one of the buyers will purposefully bid much more than the expected value of a particular storage locker in order to intimidate the other bidders. What is a plausible explanation for these excessive bids? A) The buyer is trying to establish a reputation that may affect the outcome of later auctions. B) The excessive bids may be rational if they occur during the last auction of the day. C) The bidder is trying to establish a first-mover advantage, but only if they occur during the first auction of the day. D) The excessive bids represent a form of tacit collusion among the buyers.
Suppose Ireland exports beer to China and imports pineapples from the United States. This situation suggests that
a. Ireland has a comparative advantage relative to the United States in producing pineapples, and China has a comparative advantage relative to Ireland in producing beer. b. Ireland has a comparative advantage relative to China in producing beer, and the United States has a comparative advantage relative to Ireland in producing pineapples. c. Ireland has an absolute advantage relative to the United States in producing pineapples, and China has an absolute advantage relative to Ireland in producing beer. d. Ireland has an absolute advantage relative to China in producing beer, and the United States has an absolute advantage relative to Ireland in producing pineapples.
Which of the following is NOT one of the reasons a firm might be expected to experience economies of scale?
A) specialization B) the dimensional factor C) improved productive equipment D) depreciation
The relocation of production that was once done in the U.S. to foreign nations is called
A. insourcing. B. outsourcing. C. technological change. D. unfair trade.