Industry in a monopolistically competitive industry

Assignment Help Macroeconomics
Reference no: EM1328956

Total utility of money

a. A barrier to entry creates an advantage for incumbents over new arrivals. True or false, explain.

b. Rent control in New York is a prominent example of price floor. True or false, explain.

c. When price is higher than the marginal revenue but lower than the average variable cost, the monopolist makes losses.

d. The demand curve faced by a firm in a monopolistically competitive industry is more elastic than the perfectly competitive firm's demand curve. True or false, explain.

e. An informal agreement to set prices and output is called a cartel. True or false, explain.

f. When price elasticity of demand is -2, the optimal markup on cost is 50. True or false, explain.

g. The consumer surplus represents the excess revenues above the cost of output to producers. True or false, explain.

h. The firm's ability to price discriminate does not depend on how many consumer groups it can identify. True or false, explain.

i. A natural monopoly exists if marginal revenue is falling as output expands. True or false, explain.

j. The total utility of money increases for risk averters, risk seekers, and indifferent to risk. However, their marginal utility of money varies. True or false, explain.

Reference no: EM1328956


Write a Review


Macroeconomics Questions & Answers

  Graph the demand data by using the midpoint formula

Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.

  Explain why does the magnitude of price elasticity differ

Explain why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand

  Examining causes of shift in demand and supply curves

Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.

  Deposit creation process using deposit multiplier

What is the net effect on the money supply in the economy? Show your work. Assume instead that Sammy uses the $10,000 he receives to pay back a loan from Bad Boys Bank. $8,000 goes to repay the loan itself, and $2,000 represents his Interest payme..

  Assume if the objective is to increase total income

Assume if the objective is to increase total income, should the price be increased or decreased. Explain.

  Government causally raise government spending

During a recession the government causally raise government spending

  Weaknesses of federal reserve operating procedures

Compare and contrast the strengths and weaknesses of today's Federal Reserve operating procedures and monetary decision making policy.

  Slow growth model

Your company is considering expanding overseas. It is particulary interested in developing markets, and narrowed its choice down to two countries, A and B.

  What will be the effect of change in policy

What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?

  Price elasticity of demand using mid point formula

Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes.

  Real wage and rental rate in labor abundant

According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain. What is the impact of opening trade on the real wage in Russia? Briefly explain.

  Explain how to describe price elasticity of demand

Explain how to describe price elasticity of demand. What are the factors that affect price elasticity of demand.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd