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Question
Scenario 10.3:The demand curve and marginal revenue curve for red herrings are given as follows:
Q = 250 - 5P
MR = 50 - 0.4Q
Refer to Scenario 10.3. Compared to a competitive red herring industry, the monopolistic red herring industry
A) produces more output at a higher price.
B) produces less output at a higher price.
C) produces more output at a lower price.
D) produces less output at a lower price.
E) not enough information to relate the monopolistic red herring industry to a competitive industry.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Your firm is evaluating a potential investment in new machinery, but the manager in charge of the project uses an opportunity cost of capital that is too large. How does this error affect the projected net present value of the firm's investment?
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B) NPV is understated
C) NPV is unaffected
D) NPV changes from positive to negative
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For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
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Q:
If the inflation rate falls and nominal interest rates are unchanged,
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If an individual has $10,000 in a savings account paying 3% and the inflation rate is 2%, the nominal interest rate is
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Q:
The real interest rate is
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Q:
The first term in an NPV calculation is usually
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C) zero, because interest charges do not accrue until the second period.
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Q:
The "NPV Criterion" is that a firm should invest in a new capital project if
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Q:
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Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage. What happens to the equilibrium employment level and wage for non-union workers if the union exercises its bargaining power?
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Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage. What happens to the equilibrium employment level and wage for union workers if the union exercises its bargaining power?
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Q:
Figure 14.4Given the information in Figure 14.4, the monopsony wage rate is:A) W1.B) W2.C) W3.D) W4.E) none of the above
Q:
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C) OPEC in the market for crude oil.
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Who does NOT earn economic rent in a competitive factor market?
A) No one
B) Everyone
C) The last factor of production hired
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Q:
Scenario 14.4:
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TP = 100L - 0.125L2 MP = 100 - 0.25L
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L = PL -5 MEL = 2L + 5
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A) Marginal product of labor
B) Marginal revenue product of labor
C) The supply of labor
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Q:
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Q:
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A) decrease
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D) We do not have enough information to answer this question.
Q:
Which of the following is NOT true about the supply of labor to the firm in a competitive labor market?
A) It is horizontal.
B) It is perfectly elastic.
C) It is equal to the marginal expenditure curve.
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Q:
Use the following statements to answer this question:
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A) I and II are true.
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Q:
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Q:
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B) is now maximizing profit.
C) should not use this factor of production because it has no potential in generating a profit.
D) can increase profit by expanding the employment of the factor of production.
Q:
An increase in technology that enhances labor productivity will likely result in:
A) a decrease in labor employment and an increase in the wage rate.
B) an increase in labor employment and an increase in the wage rate.
C) a decrease in labor employment and a decrease in the wage rate.
D) an increase in labor employment and a decrease in the wage rate.
E) employers using less labor and more capital while the wage effect is unknown.
Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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B) increase the number of hours worked.
C) decrease the number of leisure hours.
D) increase the sum of leisure plus hours worked.
Q:
The marginal revenue product can be expressed as the
A) additional revenue received from selling one more unit of product.
B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.