Market power creates a flawed response to an accurate price signal.
Answer the following statement true (T) or false (F)
True
Market power refers to the ability of a single consumer or producer to alter the market price of a good or service. Producers will keep prices high without the threat of competition entering the market.
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The fact that most people make some decisions based on intuition rather than calculation is:
A. inconsistent with the cost-benefit model, but still rational. B. consistent with the cost-benefit model because most people intuitively weigh costs and benefits. C. consistent with the cost-benefit model because calculating costs and benefits is irrational. D. irrational, because intuition is usually wrong.
Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the
A) demand curve for an iPod will shift rightward. B) demand curve for an iPod will shift leftward. C) supply curve for an iPod will shift leftward. D) supply curve for an iPod will shift rightward.
The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.
A. microeconomics B. development economics C. macroeconomics D. labor economics
Utility of a product is:
a) The value of a product. b) The contribution that a good or service makes to society. c) The satisfaction that a consumer obtains from a good or service. d) Any characteristic of a good or service that cannot be measured.