Which of the following is the preferred strategy for the government to follow to remedy the inefficient allocation of resources associated with monopolies?
a. preventing mergers through antitrust laws
b. regulating the prices that monopolies can charge
c. doing nothing
d. None of the above strategies is preferred. Each is a viable strategy.
d
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Which statement is consistent with the economic way of thinking?
A) Politicians seek to advance their own interests. B) Politicians are not only concerned with money and material goods. C) Politicians do not necessarily pursue narrow or selfish goals. D) All of the above. E) None of the above.
The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained
In the meantime, the orthodontic labor market experiences a A) shortage. B) quality decrease. C) surplus. D) excess demand.
According to theory, where is the right price determined?
A) where average cost equals marginal cost. B) where marginal revenue equals marginal cost. C) where total revenue equals total cost. D) where there is a markup of 300 percent.
Suppose the demand for the Diane Playing Cards has fallen. Explain what will happen to the firm's demand for loanable funds