A monopolist must produce a good for which there are no close substitutes.
Indicate whether the statement is true or false.
Ans: True.
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Refer to Figure 12-1. If the firm is producing 700 units, what is the amount of its profit or loss?
A) profit equivalent to the area A B) loss equivalent to the area A C) loss of $280 D) There is insufficient information to answer the question.
What would a leftward shift of the labor demand curve indicate?
a. Firms want to hire more workers than before at any given wage than before. b. Firms want to pay a higher wage than before at any given level of employment. c. Households want to supply fewer hours of work than before at any given wage rate. d. Firms want to hire fewer workers than before at any given wage rate. e. Households want to supply more hours of work than before at any given wage rate.
A tax on an imported good that raises its price is called a
A. tariff. B. quota. C. comparative advantage. D. comparative disadvantage.
Refer to the information provided in Table 14.6 below to answer the question that follows. Table 14.6B's Strategy ?AdvertiseDon't Advertise??A's profit $150 millionA's profit $400 million?AdvertiseB's profit $150 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $200 million?AdvertiseB's profit $400 millionB's profit $200 millionRefer to Table 14.6. If both firms follow a maximin strategy, the equilibrium in the game is
A. (Don't Advertise, Don't Advertise). B. (Advertise, Advertise). C. (Don't Advertise, Advertise). D. (Advertise, Don't Advertise).