Assume firm X is one of the three largest firms in an oligopolistic industry. Firm X is currently considering a vertical merger with another firm that is the sole supplier of an input used by all of the firms that compete with firm X
If the merger goes through, firm X would be able to operate much like: A) a perfectly competitive firm.
B) a monopolistically competitive firm.
C) an oligopolist.
D) a monopolist.
D
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When a firm ignores external costs:
A. it fails to maximize its profits. B. it is willing to produce too little of the good at the given price. C. the good is priced too cheaply in equilibrium. D. it also ignores external benefits.
According to the contract theory of wages, firms and workers agree on a contract that fixes
a. money wages. b. real wages. c. money wages and employment. d. real wages and employment.
The Keynesian consumption function is in an economy C = 10 + 0.8 Yd. When disposable income is €1000, what is total consumption?
(a) 0.8 (b) 800 (c) 810 (d) 0.81
Consumers can avoid excess tax burden by purchasing more goods that are exempt from sales taxes.
Answer the following statement true (T) or false (F)