In the case of Interstate Bakeries and Continental Bakery, the Justice Department concluded that:
A. the merger of two firms selling close substitutes may lead to higher prices.
B. Interstate Bakeries attempted to drive out Continental by using predatory pricing.
C. a merger between the two companies would save money in production costs, and so would be good for consumers.
D. Continental attempted to drive out Interstate Bakeries by using predatory pricing.
Answer: A
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What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?
A. Creative destruction B. Innovation C. The substitution effect D. Backward-bending innovation
Which of the follow is not a property of the aggregate demand curve?
A. It shows the relationship between the overall price level and the level of total demand. B. The aggregate demand curve slopes downward. C. It shows the relationship between the overall price level and level consumption. D. It shows the price level on the vertical axis and output on the horizontal axis.
Which of the following is issued to an investor to provide protection from having the invention copied or stolen for 20 years?
A. a license B. a certificate of convenience C. a patent D. a natural monopoly
Economists consider the long run as a period of more than one year.
Answer the following statement true (T) or false (F)