In a Cournot equilibrium, each firm chooses an output level which:
a. maximizes joint profits.
b. maximizes the price received.
c. maximizes profits given what the other firms produce.
d. maximizes revenue given what the other firms produce.
c
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An optimizing consumer has to choose between two goods–Good A priced at PA and Good B priced at PB
Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B, the consumer's well-being will be maximized at the point where: A) MBA = MBB. B) MBA/PB=MBB/PA. C) MBA/PA = MBB/PB. D) MBA = MBB/PB.
In the above figure, if this natural monopoly is not regulated the deadweight loss to society is
A) ecf. B) ebc. C) gac. D) gde.
The textbook defines any business with less than __________ in assets to be "small."
A) $100,000,000 B) $10,000,000 C) $1,000,000 D) $500,000
Which of the following refers to the increase in the usefulness of a product as the number of consumers who use it increases?
A) positive externalities B) network externalities C) external marginal utility D) the impact of celebrity endorsements