In monopoly and perfect competition, a firm should expand production when
A. Price is above marginal cost.
B. Price is below marginal cost.
C. Marginal revenue is below marginal cost.
D. Marginal revenue is above marginal cost.
Answer: D
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Gertie saw a pair of jeans that she was willing to buy for $35. The price tag said they were $29.99. Therefore:
A. Gertie should buy the jeans because the price is more than her reservation price. B. Gertie should not buy the jeans because they will be of lower quality than she expected. C. Gertie should buy the jeans because the price is less than her reservation price. D. Gertie should not buy the jeans because the price is not equal to her reservation price.
How does a pure public good differ from a club good? In your answer, give an example of each type of good
What will be an ideal response?
In early 2013, two economists debated the question of whether:
a. the trade deficit should be reduced rapidly or steadily b. the United States was past its prime c. the percentage of health care to GDP was a warning sign for the economy d. none of these
If a firm has at least some control over the price of its product, then the firm cannot be in which market model:
A. Oligopoly B. Pure monopoly C. Pure competition D. Monopolistic competition