A perfectly competitive firm's marginal revenue
A) may be either greater or less than price, depending on the quantity sold.
B) is equal to price.
C) is greater than price.
D) is less than price because a firm must lower its price to sell more.
B
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The equilibrium price of a theater ticket __________
Fill in the blank(s) with the appropriate word(s).
Tobacco companies did not resist the advertising ban instituted in 1970 because they actually increased profits by not being allowed to advertise
This ban forced these companies to abandon their dominant strategy of advertising and wind up at a cooperative outcome of not advertising. Prior to the ban, the tobacco companies were involved in playing A) a pure coordination game. B) a prisoner's dilemma game. C) an assurance game. D) a battle of the sexes game.
Diseconomies of scale is a result of
A) mismanagement. B) difficulties of coordinating and controlling a large enterprise. C) specialization of labor, capital, and management. D) technological progress. E) larger fixed costs as the firm's production increases.
Governments may intervene in private markets through
A. price floors. B. price ceilings. C. rationing by political power. D. All of these.