In a perfectly competitive market, the process of entry and exit will end when firms face
a. marginal revenue equal to long-run average total cost.
b. total revenue equal to average total cost.
c. average revenue greater than marginal cost.
d. accounting profits equal to zero.
a
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What is one way firms can enforce tie-in sales?
A) One of the goods has no close substitutes. B) contractual arrangements C) information asymmetry D) Any of the above.
(Consider This) Brinley is the hottest new pop singer, but his agent discovers that Internet sales of Brinley's music have been poor due to Internet piracy, but concerts are regularly sold out and merchandise (such as T-shirts) sells well. If Brinley
wants to enhance profits, economists would most likely recommend that he: A. charge more for downloads, concerts, and merchandise. B. cut prices for downloads, concerts, and merchandise. C. only give concerts. D. keep prices of downloads low and raise prices for concerts and merchandise.