A local electricity-generating company has a monopoly that is protected by an entry barrier that takes the form of

Question 16 options:

control of a key raw material

a perfectly inelastic demand curve

legal monopoly

economies of scale

The Internet has created a new category in the book selling market, namely, the "barely used" book. How does the availability of barely used books affect the market for new books?

Question 17 options:

The demand curve for new books shifts to the left

The supply curve for new books shifts to the right

The demand curve for new books shifts to the right

The supply curve for new books shifts to the left

Refer to Table, which gives the total revenue schedule and total cost schedule of a perfectly competitive firm. The marginal revenue received from When there is a negative externality, the marginal private cost of production ________ the marginal social cost of production.

Question 25 options:

is greater than

is less than

is equal to

eliminates

Assume that Lexus (L) is the first automobile company to produce a luxury class hybrid automobile and is the only such company for the past four years. BMW is now considering producing its own luxury hybrid automobile and Lexus must decide whether or not to lower the price of its luxury hybrid to counter BMW's entry into the luxury hybrid niche.

Should Lexus lower its price in order to deter BMW's entry into the luxury hybrid automobile market?

Question 27 options:

No, it should keep the same price and work to capitalize on its brand loyalty

No, because BMW will enter the market regardless of Lexus' decision about its price

In terms of profit earned, it makes no difference whether Lexus lowers its price or not; in either case it will make $280 million profit if BMW enters

Yes, it will drive BMW out of the market

Jill Johnson owns a pizzeria. She currently produces 10,000 pizzas per month at a total cost of $500. If she produced one more pizza her total cost rises to $500.11. What does this tell us about Jill's marginal cost of producing pizzas?

Question 28 options:

The marginal cost of producing pizzas cannot be determined without more information

The marginal cost of producing pizzas falls when one more is produced.

The marginal cost of producing pizzas is constant when one more is produced.

The marginal cost of producing pizzas rises when one more is produced.