Compared to the purely competitive industry, a pure monopoly:
A. Is able to use barriers to entry and maintain positive economic profits in the long run
B. Produces an equal amount of output, but charges higher prices to cover all costs in the market
C. Is often more efficient from society's perspective because it has big plants and it uses the newest technology
D. Will always become competitive in the long run because positive economic profits will induce competitors into the market
A. Is able to use barriers to entry and maintain positive economic profits in the long run
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The theoretical effects of taxation on portfolio composition are ambiguous.
A. True B. False C. Uncertain
Refer to the following graph.
Elasticity is smallest at which point?
A. A B. B C. C D. D
If the marginal utilities of the first 4 candy bars consumed are 10, 12, 9, and 7, respectively, the total utility derived from consuming 3 candy bars is
a. 3 b. 9 c. 25 d. 31 e. Total utility cannot be derived from marginal utility. On the other hand, marginal utility can be derived from total utility.
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market is in equilibrium, then total surplus is represented by:
A. ACBEFD - BEF B. AEFD + ACBE C. BEG + EFH D. CBEFDA + EGH