This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements accurately describes a difference between a firm that is a ... (Read 282 times)

nautica902

  • Hero Member
  • *****
  • Posts: 591
Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?
 a. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist.
  b. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does.
  c. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost.
  d. A monopolist can earn economic profit in the short run; a competitive price taker cannot.

Question 2

JoAnn considers cola and plain sparkling water to be good substitutes. Suppose the price of sugar, a key ingredient used to produce cola, falls. According to the income effect, which of the following is most likely to occur?
 a. JoAnn will purchase less cola and more sparkling water.
  b. JoAnn will purchase more cola and less sparkling water.
  c. JoAnn will purchase more of most goods due to her higher real income.
  d. JoAnn's demand curve will decrease (shift in), causing her to purchase less cola.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

akemokai

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

a

Answer to Question 2

c




nautica902

  • Member
  • Posts: 591
Reply 2 on: Jun 30, 2018
Gracias!


Sarahjh

  • Member
  • Posts: 370
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

For a complete list of videos, visit our video library