Principles of Microeconomics by Robert H. Frank & Ben Bernanke

Author:Robert H. Frank & Ben Bernanke [Frank, Robert H. & Bernanke, Ben]
Language: eng
Format: epub
ISBN: 9781264364763
Google: K60MzgEACAAJ
Publisher: McGraw-Hill
Published: 2020-12-15T20:30:38+00:00

KEY TERMS

constant returns to scale

cost-plus regulation

deadweight loss

hurdle method of price discrimination

imperfectly competitive firm (or price setter)

increasing returns to scale (or economies of scale)

marginal revenue

market power

monopolistic competition

natural monopoly

oligopoly

perfect hurdle

perfectly discriminating monopolist

price discrimination

pure monopoly

Review Questions

Page 233

What important characteristic do all three types of imperfectly competitive firms share? (LO1)

True or false: A firm with market power can sell whatever quantity it wishes at whatever price it chooses. (LO2)

Why do most successful industrial societies offer patents and copyright protection, even though these protections enable sellers to charge higher prices? (LO2)

Why is marginal revenue always less than price for a monopolist but equal to price for a perfectly competitive firm? (LO4)

True or false: Because a natural monopolist charges a price greater than marginal cost, it necessarily earns a positive economic profit. (LO4)

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