Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which is the going market price. He thinks that he can increase his profit by raising the price. Is it possible? Why or why not?
What will be an ideal response?
Ques. 2The U.S. government provides monthly payments to retired workers under which program?
A) the Old Age, Survivors, Disability and Health Insurance (OASDHI)
B) the Temporary Assistance for Needy Households (TANF)
C) the Supplementary Security Income (SSI)
D) a series of income tax rebates
Ques. 3When long-run average cost decreases as output increases there are definitely
A) increasing marginal returns.
B) economies of scale.
C) Both answers A and B are correct.
D) Neither answer A nor B is correct.
Ques. 4All of the following are devices that governments can use to achieve a more efficient allocation of resources in the presence of external benefits EXCEPT
A) vouchers.
B) private subsidies.
C) marketable permits.
D) public provision.
Ques. 5In monopolistic competition, firms sell a differentiated product. In perfect competition, firms sell an identical product. How do these markets differ as a result?
What will be an ideal response?
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