X-inefficiency is said to occur when a monopolist's:
A. Average cost is greater than the minimum possible average cost at a given output level
B. Marginal costs are greater than the minimum possible total costs of producing the output
C. Total costs are greater than the minimum possible average costs at a given output level
D. Short-run costs of producing any output are greater than the long-run costs
A. Average cost is greater than the minimum possible average cost at a given output level
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Excess volatility refers to
A) the unwillingness of financial analysts to consistently recommend the same stocks. B) the greater volatility of futures prices compared to the volatility of prices of the underlying assets. C) the tendency for stocks with high rates of returns also to have quite variable returns. D) the larger movements in market prices of stock than in their fundamental values.
When a binding price floor is placed on a good, some suppliers who want to sell the good cannot do so
a. True b. False Indicate whether the statement is true or false
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base rises
b. The GDP Price Index rises and monetary base falls. c. The GDP Price Index and monetary base fall. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Suppose a consumer is currently buying 5 goods so that utility is maximized. The price of one of the goods falls while the prices of the other 4 goods do not change. The consumer should
A. buy less of all goods being consumed to get to the optimal position. B. buy more of the good that has experienced the fall in price to get to the optimal position. C. buy more of all goods being consumed to get to the optimal position. D. buy more of all of the goods but the one that experiences the decline in price, to get to the optimal position.