What is one reason activists might lobby the government to force firms to produce more output than they normally would in a perfectly competitive market?
A) They value consumer surplus more than producer surplus.
B) They value producer surplus more than consumer surplus.
C) They seek to avoid future regulation.
D) They seek to minimize total surplus.
A
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Which of the following is an example of comparative statics?
A) The estimation of the supply of a good when the wage rate of labor changes from $30 to $10 per hour B) The estimation of the ideal number of workers a firm should hire when wage rate is $20 per hour C) The estimation of the quantity demanded of a good when its price is $5 D) The estimation of the demand for a particular good when consumer income is $10
One difference between oligopoly firms and firms that are monopolistic competitors is that:
a. the average total cost curves of monopolistic competitors are generally u-shaped, but for oligopoly firms they are not. b. monopolistic competitors choose a level of output such that marginal revenue equals marginal cost, but oligopoly firms generally do not. c. monopolistic competitors face lower costs on average than do oligopoly firms. d. the interdependence among firms is highly significant in oligopoly markets, but not in monopolistically competitive markets.
Based on information from the U.S. Census, which of the following statements is true?
a. Black women and white women with similar levels of education and experience earn similar pay. b. Blacks and whites have lower levels of educational attainment than Hispanics and Asians. c. Whites and Hispanics have higher levels of educational attainment than Asians and blacks. d. White and black college graduates earn significantly different salaries immediately after college.
Price leadership is a form of
A. tacit collusion. B. explicit collusion. C. monopolistic competition. D. a cartel policing mechanism.