In the Hotelling model of spatial competition, profits arise from:
a. monopoly power.
b. rents based on locational advantage.
c. the ability to price discriminate.
d. increasing returns to scale.
b
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Using the table above, if the current market value of the dollar is 125 francs per dollar
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor A expects dollar depreciation, but B and C expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
Which of the following scenarios are illustrated in the give PPC? (check all that apply)
a. An economy in full employment along the curve b. Unemployment at point W c. Output combination C is better than the output combination B d. Attainable combinations of both goods below the curve
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should
A) increase output. B) increase price. C) remain at the same position. D) shut down.
Consider the production possibilities frontier displayed in the figure shown. The fact that the line slopes downward displays which economic concept?
A. Specialization B. Trade-offs C. Production possibilities D. Efficiency