For firms that sell one product in a perfectly competitive market, average revenue will:
A. increase if marginal revenue is greater than it.
B. decrease if marginal revenue is greater than it.
C. always be the same as marginal revenue.
D. always be greater than average total cost.
C. always be the same as marginal revenue.
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The chain store paradox of an incumbent who accommodates a finite stream of potential entrants threatening to enter sequentially numerous markets illustrates
a. backwards induction b. the unraveling problem c. subgame perfect equilibrium d. best reply responses e. all of the above
Adverse selection in health insurance occurs when those who are less likely to need health care, such as younger and healthier workers, choose not to purchase it.
Answer the following statement true (T) or false (F)
Many large companies offer employees time off during the workday to attend seminars on how to improve their health. Some even give bonuses to people who show that they are adopting healthy lifestyles by, for example, weighing in before and after the holidays to show that they are following a sensible diet. Other than showing that they "care" about their employees and trying to minimize the number of days missed from work, why would a company adopt a program like this?
What will be an ideal response?
A change in consumer taste will prompt a change in _____________.
Fill in the blank(s) with the appropriate word(s).