Some governments have made great efforts to "formalize" informal firms by extending regulations and their enforcement. Might governments be better advised to ignore, or even help, informal firms?
What will be an ideal response?
The contributions of informal firms (output, employment, training, etc.) should be mentioned, along with the cost of enforcing regulations on many small firms. Given many advantages to medium and large firms, government might be better off allocating its resources to enforcing legitimate regulations on those firms and letting smaller ones operate more freely.
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Personal consumption expenditures include all of the following EXCEPT spending on
A) consumer durable goods. B) consumer nondurable goods. C) consumer services. D) new housing.
The president of a company is told that the fixed costs next year will be higher than anticipated. Even so he has told his operations managers that this should not affect their production levels. Comment on this statement
What will be an ideal response?
The first piece of antitrust legislation in the United States to deal with price discrimination was the
a. Clayton Act b. FTC Act c. Cellar-Kefauver Act d. Robinson-Patman Act e. Sherman Antitrust Act
Think of a firm that has a monopoly producing milk. The firm's demand curve is
a. identical to the demand curve for milk facing the industry b. identical to its marginal revenue curve c. tangent to the firm's ATC curve d. tangent to its marginal revenue curve e. more elastic than the demand curve of any perfectly competitive firm producing milk