1a) A monopolist maximizes profit by maximizing price. True False 1b) In the in an advertising "prisoner's dilemma" game, both firms end up __________________ which turns out to be ________________________ advertising; better for them both. advertising; worse for them both not advertising; better for them both not advertising; worse for them both. 1c) In the short run, if a firm shuts down, the firm's total revenue is equal to fixed cost. variable cost. total cost. zero. 1d) Suppose that demand increases in an increasing-cost industry that is in long-run competitve equilibrium. After the market has completely adjusted, the equilibrium price will be above its original level. below its original level. equal to its original level. indeterminate. 1e) Which of the following characteristics can be used to differentiate products in a specific market? Low prices. Advertising. Barriers to entry. Low costs.
1a) A monopolist maximizes profit by maximizing price. True False 1b) In the in an advertising "prisoner's dilemma" game, both firms end up __________________ which turns out to be ________________________ advertising; better for them both. advertising; worse for them both not advertising; better for them both not advertising; worse for them both. 1c) In the short run, if a firm shuts down, the firm's total revenue is equal to fixed cost. variable cost. total cost. zero. 1d) Suppose that demand increases in an increasing-cost industry that is in long-run competitve equilibrium. After the market has completely adjusted, the equilibrium price will be above its original level. below its original level. equal to its original level. indeterminate. 1e) Which of the following characteristics can be used to differentiate products in a specific market? Low prices. Advertising. Barriers to entry. Low costs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1a) A monopolist maximizes profit by maximizing
True
False
1b) In the in an advertising "prisoner's dilemma" game,
both firms end up __________________ which turns out to be ________________________
both firms end up __________________ which turns out to be ________________________
advertising; better for them both.
advertising; worse for them both
not advertising; better for them both
not advertising; worse for them both.
1c) In the short run, if a firm shuts down, the firm's total revenue is equal to
fixed cost.
variable cost.
total cost.
zero.
1d) Suppose that demand increases in an increasing-cost industry that is in long-run competitve equilibrium.
After the market has completely adjusted, theequilibrium price will be
After the market has completely adjusted, the
above its original level.
below its original level.
equal to its original level.
indeterminate.
1e) Which of the following characteristics can be used to differentiate products in a specific market?
Low prices.
Advertising.
Barriers to entry.
Low costs.
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