Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
a. DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent.
b. DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century.
c. DeBeers carefully limited the amount of diamonds it released into the market.
d. DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.
D
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In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:
A. the value of the gas that is no longer stolen by people who drove off. B. not having to look outside for people waving at you to turn on the pump. C. lost revenue when people under estimate what they think their gas tanks will hold in order to avoid going back into the store to get change from overpayment. D. a loss of snack sales because people decide to come into the store to pay for gas before pumping versus after pumping their gas.
The baby boomer generation is just starting to retire, and waiting lists to get into nursing homes are on the rise. We could reasonably expect the demand for geriatric care to:
A. increase due to the number of buyers increasing. B. decrease due to the number of buyers increasing. C. increase due to expectations of future prices. D. decrease due to expectations of future prices.
The marginal expenditure of a monopsonist is $4. The wage it currently pays is $3. The labor supply curve has a constant elasticity. What is the elasticity of the labor supply?
A) 0.33 B) 0.66 C) 1 D) 3
Total utility is maximized when the ________ for all goods
A) marginal utility per dollar spent is equal B) marginal utilities are zero C) marginal utilities are maximized D) marginal utilities are negative