What is the typical effect of government actions, such as laws and regulations, that impose barriers of entry to oligopolistic markets?
a. The actions benefit consumers by lowering prices on goods and services.
b. The actions protect the quality of goods and services that are sold.
c. The actions prevent the formation of monopolies.
d. The actions encourage greater competition.
b. The actions protect the quality of goods and services that are sold.
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Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5
Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?
If the Federal Reserve increases the growth rate of the money supply, in the long run
a. inflation is higher and the unemployment rate is lower. b. inflation is higher while the unemployment rate is unchanged. c. inflation is unchanged while the unemployment rate is lower. d. None of the above is correct.
The market demand for a monopoly firm is estimated to be:Qd = 100,000 - 500P + 2M + 500PRwhere Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to beAVC = 520 - 0.03Q + 0.000001Q2Total fixed cost in 2016 is expected to be $4 million. The estimated marginal cost function is
A. SMC = 260 - 0.03Q + 0.000015Q2. B. SMC = 260 - 0.015Q + 0.000005Q2. C. SMC = 520 - 0.06Q + 0.000003Q2. D. SMC = 520 - 0.03Q + 0.000002Q2. E. none of the above
Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:
A. greater the surplus a price floor will create. B. smaller the shortage a price floor will create. C. greater the shortage a price floor will create. D. smaller the surplus a price floor will create.