High barriers to entry are generally found in:
a. monopolistically competitive markets.
b. oligopolistic markets
c. monopolistic markets.
d. both (b) and (c).
d
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An increase in demand for DVD machines occurs. Which of the following statements is TRUE for individual firms that produce DVD machines?
A) The price of DVD machines will decrease leading to an increase in the demand for labor by the firm. B) The price of DVD machines will increase leading to an increase in the demand for labor by the firm. C) The price of DVD machines will increase leading to a decrease in demand by customers leading to a decrease in the demand for labor by the firm. D) A change in demand at the industry level does not influence an individual firm's demand curve for labor.
Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increase in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for kerosene by 1.6 percent. This indicates that (i) the demand for kerosene is price inelastic and (ii) kerosene and electricity
are substitutes. Which of these two statements is correct? a. i and ii b. i not ii c. ii not i d. neither i nor ii
Table 29-1Effects of an open-market transaction on the balance sheets of banks and the fed (in millions of dollars) Banks ? Federal Reserve System ? Assets Liab. Assets Liab. Reserves +$10 ? U.S. Gov’t Bank Reserves U.S. Gov’t ? Sec. +$10 +$10 Securities?$10 ? ? ? ? In Table 29-1, the Federal Reserve System has
A. sold $10 million in government securities to banks, taking payment in cash. B. sold $10 million in government securities to banks, taking payment from the bank’s reserves. C. purchased $10 million in government securities from banks, paying for them with increases in banks’ reserves. D. purchased $10 million in government securities from banks, paying for them with new Federal Reserve notes.
When society overallocates resources to a product it means that the:
A. marginal benefit is less than the marginal cost. B. opportunity cost of the product is decreasing. C. investment in the product is declining. D. marginal benefit is greater than the marginal cost.