Which of the following is a difference between a monopolist and a firm in perfect competition?
a. The marginal revenue curve is downward-sloping.
b. Marginal revenue equals price.
c. Economic profits are zero in the long-run.
d. The marginal revenue curve lies above the demand curve.
a
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Intel and AMD are a duopoly that produces CPU chips. Intel and AMD can conduct R&D or they cannot conduct R&D. The table above shows the payoff matrix for the two firms. The numbers are millions of dollars of profit
The Nash equilibrium is for Intel to ________ and for AMD to ________. A) conduct R&D; conduct R&D B) conduct R&D; not conduct R&D C) not conduct R&D; conduct R&D D) not conduct R&D; not conduct R&D E) conduct R&D; either conduct R&D or not conduct R&D, the equilibrium could be either choice for AMD
All firms can increase profits using price discrimination
A) True, because market demand curves are downward sloping B) True, because firms can sell different versions of a product that is just right for an individual consumer C) False, because consumers aren't forced to buy a firm's products D) False, because some firms are in competitive markets
Rent controls typically end up
a. increasing rents received by landlords b. raising property values c. encouraging landlords to overspend for maintenance d. discouraging new housing construction e. unnecessarily increasing the long-run supply of housing
Testing a theory by comparing the theory's implications with data obtained in the real world is called
A) empirical analysis. B) descriptive calibration. C) historical variance analysis. D) univariate analysis.