Positive economic profits in a perfectly competitive market imply that:
A) producers are earning more than their opportunity cost.
B) existing firms are likely to leave the market.
C) the cost of production is equalized across producers.
D) government intervention is required to stabilize the market.
A
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A monopolist can make an economic profit in the long run because of
A) the relatively elastic demand for its product. B) the relatively inelastic demand for its product. C) the firm's price setting behavior. D) barriers to entry.
We may not be able to predict the outcome of a two-player game when
a. each player follows a strategy that negates the strategy of the other player b. price exceeds marginal cost c. neither player has a subsistence strategy d. neither player has a dominant strategy e. at least one player has a bilateral strategy
Applying Pareto's Law via ABC classification of customers is a two step process. Which of the following are steps in the classification process?
a. Sort customers based on sales (or profits) b. Sort custoemrs based on how well you get along with their buyers c. Reclassify customers based on strategic issues like access to scarce resources d. Reclassify customers based on what they buy from you e. Both B and C f. Both A and C
What impact do tax rebates have?
What will be an ideal response?