A prediction from the kinked demand curve model of oligopoly is that, for an individual firm, small changes in:
A. Demand will lead to changes in price or output
B. Marginal revenue will lead to changes in price and output
C. Marginal cost will lead to changes in price and output
D. Marginal cost will not lead to changes in price or output
D. Marginal cost will not lead to changes in price or output
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Producer surplus
A. is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price. B. is the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price. C. rises as equilibrium price falls. D. is the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept.
Public goods are basically
A) rival in consumption. B) nonrival in consumption. C) depletable in consumption. D) nondepletable in consumption.
According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?
a. Always-monopoly is per se illegal under the rule of reason. b. Only when the monopoly created negative externalities. c. Only when the monopoly engaged in illegal business practices. d. Only when the monopoly charged excessively high prices.
If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for
a. unskilled labor will rise and skilled labor will fall. b. skilled labor will rise and unskilled labor will fall. c. both skilled and unskilled labor will rise proportionately. d. both skilled and unskilled labor will be unaffected, assuming no barriers to free trade.