Compared to perfectly competitive markets, monopoly produces
a. higher output and lower price.
b. lower output and higher price.
c. lower output and lower price.
d. higher output and higher price.
B
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Which of the following is true of monopolistic competition but is not true of perfect competition?
a. Each firm distinguishes its product from that of its competitors. b. The firm engages in marginal cost pricing. c. The firm produces at the point where average total cost is minimized. d. There are significant barriers to the entry of new firms in the industry.
In a map showing three indifference curves a consumer is most well off on
A. the curve which is most farther away from the coordinate axes. B. the curve which is closest to the origin of the coordinate axes. C. the curve that is in the middle. D. none of these.
In order to discourage consumers from eating unhealthy fast food, the government is considering placing a tax on all fast food sales. Which of the following statements is true?
A. The tax on fast food will likely increase the demand for home cooked meals. B. The tax on fast food will likely raise considerable revenue but will be unlikely to reduce the consumption of fast food by consumers. C. A tax on fast food will only be effective if demand is perfectly inelastic. D. Given the numerous alternatives, consumers' demand for fast food is relatively inelastic and the tax will not likely work to discourage fast food consumption.
Ball's research on disinflation across different countries found that
A) costs of disinflation were smaller for rapid disinflation than for gradual disinflation. B) costs of disinflation were larger for rapid disinflation than for gradual disinflation. C) costs of disinflation were about the same for both rapid and gradual disinflation. D) costs of disinflation were smaller when the central bank had a strong inflation-fighting reputation.