A monopoly firm operates with declining marginal cost. If regulators impose marginal cost pricing, the market will
a. remain a monopoly but behave like a perfectly competitive industry.
b. become perfectly competitive.
c. be entered by additional firms but will not necessarily become perfectly competitive.
d. be exited by the existing firm if the regulators will let the firm leave the market.
d
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A)
If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point? A) none of the points shown B) B C) C D) E
Arturo runs a Taco Bell franchise. He is selling 250 Gordita Supremes per week at a price of $2.75. If he lowers the price to $2.70, he will sell 251 Gordita Supremes
What is the marginal revenue of the 251st Gordita Supreme? If selling the extra Gordita Supreme adds $0.20 to Arturo's costs, what will be the effect on his profit from selling 251 Gordita Supremes instead of 250?
A die is rolled. If it lands 1 or 2, the person receives $90. If it 3 or 4, the person receives $30.00. If it lands 5 or 6, the person receives $60. If the person is willing to pay $60 to take this gamble, they must be
a. risk-averse. b. risk-neutral. c. risk-preferring. d. either risk-neutral or risk-preferring (not risk-averse).
Where are the most economically advanced capitalist countries located?
a. Western Europe b. North America c. New Zealand d. All of the above are locations of some of the most economically advanced capitalist countries.