A markup of price over marginal cost is inconsistent with free entry and zero profit
a. True
b. False
Indicate whether the statement is true or false
False
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In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the ____ and get a ____
a. price elasticity of demand; number less than 1 b. income elasticity; positive number c. price elasticity; negative number d. price elasticity of demand; number greater than 1 e. cross-price elasticity; positive number
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. What is the probability of drawing a blue marble in the first game?
A. 25 percent B. 20 percent C. 50 percent D. 75 percent