Prices in the Bertrand model are
A. the same as prices under a shared monopoly.
B. the same as prices would be in the perfectly competitive case.
C. slightly higher than prices would be under a shared monopoly.
D. slightly higher than prices would be in the perfectly competitive case.
Answer: B
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Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?
A) The supply of broccoli decreases. B) The supply of broccoli increases. C) There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli. D) There will be no change in the supply of broccoli, but instead there is a decrease in the quantity supplied of broccoli.
When an increase in a network's membership increases the product's value to users, there are
a. network externalities. b. economies of scale. c. natural monopolies. d. diminishing costs.
If a recessionary GDP gap exists, which of the following sets of policies should the Federal Reserve Board pursue?
A. Sell government securities, lower the discount rate, and lower the required reserve ratio. B. Sell government securities, lower the discount rate, and raise the required reserve ratio. C. Buy government securities, raise the discount rate, and lower the required reserve ratio. D. Buy government securities, lower the discount rate, and lower the required reserve ratio.
When ________ for a monopolistically competitive firm, the firm is in long-run equilibrium.
A. MR = MC and P = ATC B. MR < MC and P < ATC C. MR = MC and P > ATC D. MR > MC and P > ATC