Large firms that invest in specific assets which cannot easily be redeployed to other uses or ...

Large firms that invest in specific assets which cannot easily be redeployed to other uses or locations, may be able to protect their profits for longer than if they do not make such investments.
  Indicate whether the statement is true or false

QUESTION 2

Billy is running a fast-food burger stand in his small community. If he is like other monopolistic competitors in short-run equilibrium which of the following would be true?
 a. His demand curve would be downward sloping.
 b. His marginal revenue curve would lie below his demand curve.
  c. He would be maximizing profits where his MC = MR.
 d. All of the above would be characteristics of Billy's burger stand.

QUESTION 3

Suppose that the price of an ounce of gold is 120 pesos in Mexico and 2,400 yen in Japan. Then the Japanese yen is worth two hundred times the value of a Mexican peso.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

If Electro is a retailer of ductile iron pipes manufactured by Steelfact Corporation, an agreement between these two companies will be called a horizontal agreement.
  Indicate whether the statement is true or false

QUESTION 5

To maximize its profit, a monopolistically competitive firm produces the output level at which ____.
 a. its price elasticity of demand equals one
  b. MR = MC
 c. ATC is minimized
 d. MR = AVC

QUESTION 6

Countries that maintain a constant gold value for their currencies are said to be on a gold standard.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

When an innovation spreads among producers, the earlier adopters enjoy longer-lived streams of profit before the market reaches its new long-run equilibrium.
  Indicate whether the statement is true or false