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A patent creates a monopoly by restricting ________.

Two firms, Alpha and Beta, produce identical computer hard drives. They have identical costs, and the hard drives they produce are identical. The industry is a natural duopoly. Alpha and Beta enter into a collusive agreement, according to which they split the market equally. If both firms cheat on the agreement so the market is the same as a competitive market,

Which of the following statements is (are) correct? i. A profit maximizing single-price monopolist sets price equal to marginal cost. ii. A monopoly is a firm that produces a good or service for which no close substitute exists. iii. In order to maximize its profit, a single-price monopoly always produces output in the inelastic range of the demand for its product. iv. In a Nash equilibrium, each player takes the best possible action given the actions of the other players. v. A marginal-cost pricing rule for a natural monopoly is that the firm earns an economic profit. vi. In the short run, a firm in monopolistic competition produces where P = MC.

the demand for its product is inelastic, a monopoly’s

In a perfectly competitive industry, the demand for a single firm’s product is perfectly elastic.

The short run is a time period during which

Labor (workers) Output (bikes) Total fixed costs (dollars) Total variable cost (dollars) Total cost (dollars) 0 0 200     1 20   100   2 50       3 60       4 64       The table above gives costs at Jan’s Bike Shop. Unfortunately, Jan’s record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes?

Marginal utility theory predicts that a rise in the price of a banana results in

Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of

The paradox of value between diamonds and water is explained by the fact that the