Oligopoly is about the ____________ and monopolistic competition is about the ______________.
A. number of firms; variety of products
B. variety of products; barriers to entry
C. barriers to entry; number of firms
D. variety of products; number of firms
A. number of firms; variety of products
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In both Gamma and Delta average labor productivity is $40,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Fifty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.
A. $2. 4 billion; $4. 8 billion B. $4 billion; $8 billion C. $8 billion; $16 billion D. $100,000; $200,000
The monopsonist's markdown in the buying price increases as
A) the supply elasticity declines. B) the supply elasticity increases. C) the demand elasticity declines. D) the demand elasticity increases.
Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition. B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition. C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition. D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
Assume Cathy's Cupcake Company operates in a perfectly competitive market producing 10,000 cupcakes per day. At this output level, marginal cost exceeds this firm?s price. Assuming price exceeds average variable cost, to maximize profits Cathy's should
A. increase their output. B. stop producing since it is earning a loss. C. decrease their output. D. make no adjustments as they are already maximizing their profits.