Market power exists if a firm can alter:
a) The production function.
b) Its own supply curve.
c) The market price.
d) Its costs of production.
Answer: c) The market price.
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According to the text, economists consider full employment to occur when
A) the sum of frictional unemployment and structural unemployment equals zero. B) the unemployment rate consists of only frictional and structural unemployment. C) frictional unemployment equals zero. D) everyone who wants a job has a job.
What causes a person, or a nation, to be poor? Why are there poor people in rich countries, and rich people in poor countries?
What will be an ideal response?
Changes to the ______ lead to shifts in the demand curve.
a. determinants of demand b. price of the good being studied c. quantity demanded d. supply of the good being studied
In the 1990s, the price level in Japan fell relative to the price level in the United States. If the exchange rate did not change, one would expect that:
A. both U.S. exports to Japan and U.S. imports from Japan would rise. B. U.S. exports to Japan would decline and U.S. imports from Japan would rise. C. both U.S. exports to Japan and U.S. imports from Japan would fall. D. U.S. exports to Japan would rise and U.S. imports from Japan would decline.