In Solow's exogenous growth model, the economy reaches a stable steady state because
A) the marginal return of capital is decreasing.
B) capital is growing at a constant rate.
C) the substitution effect is stronger than the income effect.
D) conditional convergence holds.
A
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For a two-part tariff imposed on two consumers, the entry fee is based on the:
A) consumer surplus of the customer with lower willingness-to-pay. B) consumer surplus of the customer with higher willingness-to-pay. C) simple average of the consumer surplus for the two buyers. D) none of the above
A major distinction between a monopolistic ally competitive firm and an monopolistic firm is that:
A. One is a price taker and the other is a price maker B. A recognized interdependence exists between firms in one industry but not in the other C. One always produces differentiated products and the other always produces a homogeneous product D. One necessarily faces a downward-sloping demand curve and the other a horizontal demand curve