In a Bertrand model, market power is a function of
A) marginal cost.
B) the number of firms.
C) price elasticity of supply.
D) product differentiation.
D
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In general, more efficient taxes have:
A. lower administrative burdens. B. more complexity. C. lower revenues given the size of the tax. D. All of these statements are true.
The amount that Medicare pays a hospital for treating a Medicare patient is determined:
a. after medical services are provided. b. before the patient sees a physician. c. at the time of admission to the hospital. d. after the hospital bill is reviewed by Medicare auditors. e. at the point when the diagnosis is made
Assume a pencil manufacturer is employing resources C and D in such quantities that the MRPs of the last units hired are $80 and $50 respectively. The price of resource C is $90 and the price of D is $35. This firm:
A. should hire less of C and more of D. B. should hire more of both C and D. C. should hire less of both C and D. D. is using the least-cost combination of C and D.
If the long-run average total cost curve is rising as output increases, then the firm faces diseconomies of scale.
Answer the following statement true (T) or false (F)