In the long run, perfectly competitive firms produce at the output level that has the minimum
A) marginal cost.
B) average total cost.
C) average variable cost.
D) average fixed cost.
E) total revenue.
B
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In the above figure, the total variable cost curve is curve
A) A. B) B. C) C. D) none of the curves in the figure.
Refer to Scenario 5.4. What is the pay-off of outcome C?
A) -150 B) 0 C) 25 D) 100 E) 150
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right.
If Candidate X is running for office against Candidate Z, then:
A. all voters to the left of Z will vote for X, and all voters to the right of Z will vote for Z. B. all voters who would have voted for Y will vote for X. C. Candidate X might win. D. Candidate Z will win.
When the coupon rate on newly issued bonds decreases from 6% to 5%, the prices of existing bonds:
A. increase. B. remain unchanged. C. decrease only if the coupon rate is less than 5%. D. decrease.