The MRP curve for a monopolist in the product market is
A. the same as the MRP curve for a perfectly competitive firm in the product market.
B. to the left and below the MRP curve for a perfectly competitive firm in the product market.
C. upward sloping and below the MFC curve for a perfectly competitive firm in the product market.
D. to the right and above the MRP curve for a perfectly competitive firm in the product market.
Answer: B
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Suppose that all firms in a constant-cost industry have the following long-run cost curve:
c(q) = 4q2 + 100q + 100 The demand in this market is given by QD = 1280 - 2p. Suppose the number of firms in the market is restricted to 80 a. Derive the supply curve with this restriction. Find the market equilibrium price and quantity with the restriction. b. If firms are allowed to buy and sell these permits in an open market, what will be the rental price of permits? Will firm's that own permits make profit? Briefly explain. c. How much deadweight loss is generated by the permit system? Provide a graph showing the region of this deadweight loss. d. Suppose the government abandons the permit system and simply imposes a fixed fee on firms in the market. If the fee is set equal to the permit price you found in c., what will be the equilibrium price, quantity, number of firms and deadweight loss?
Margin calls are more likely to happen when markets are:
A. crashing. B. booming. C. stable. D. irrational.
Imagine that there are only two nations in the world, the United States and Mexico. If Americans buy more goods made in Mexico, other things constant, the
a. U.S. demand curve for Mexican pesos will shift rightward b. U.S. demand curve for Mexican pesos will shift leftward c. U.S. supply curve of Mexican pesos will shift leftward d. U.S. supply curve of Mexican pesos will shift rightward
As of 2009, what was the last year that U.S. experienced deflation?
A) 1933 B) 1955 C) 1973 D) 1991 E) 2001