Questions of what to produce, how much to produce, and who will get the output must be faced by
a. market economies.
b. centrally planned economies.
c. the economies of underdeveloped countries.
d. all economies.
d
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Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price
a. True b. False Indicate whether the statement is true or false
Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. The firm currently uses a standard pricing strategy. Which of the following will allow the firm to enhance the profits?
A. Engage in commodity bundling. B. Engage in two-part pricing and engage in commodity bundling. C. Engage in two-part pricing. D. Engage in randomized pricing.
Label each of the following statements as true/false.
1) Economies of scale is a source of monopoly price setting power. 2) In a monopoly market there are high barriers to entry, but in a competitive and oligopoly market there are low barriers to entry. 3) In a competitive market and an oligopoly market firms sell differentiated products. 4) At the long-run market equilibrium, firms in monopoly market can earn positive profit and firms in a competitive market must earn zero profit. 5) A firm in any market will maximize profits by setting quantity such that marginal cost is equal to marginal revenue. 6) Firms in monopoly and oligopoly markets have price-setting power.
The leadership of the Federal Reserve System is provided by
A. the Federal Open Market Committee. B. the Board of Governors. C. the Federal Advisory Committee. D. the directors of the twelve Federal Reserve banks.