Each of the following is a determinant of market power but which is the critical determinant of market power?
A. The availability of substitute goods.
B. The extent of barriers to entry.
C. The number of producers.
D. The size of each firm.
Answer: B
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The demand curve for a good
a. is determined primarily by the cost of producing the good. b. indicates the relationship between the price of the good and the price of other goods. c. illustrates the quantity producers will provide at alternative prices. d. indicates the quantities of the good that people are willing to purchase at various prices.
The demand for education is determined by the
A. demand for human capital. B. demand for nonhuman capital. C. supply of human capital. D. supply of nonhuman capital.
If this firm were a perfect competitor, it would produce at _____ units of output and charging a price of _______.
A. 200; $7.00.
B. 200; $12.80.
C. 280; $10.40.
D. 280; $12.00.
The system of government in the U.S. has historically been one of checks and balances. Provide examples of these checks and balances as they pertain to the Board of Governors of the Federal Reserve and their relationship to the executive and legislative branches of government.
What will be an ideal response?