Asset specificity is largest when
a. value in first best use is large
b. value in second best use is large
c. customers choose their supplier at random
d. very valuable assets are non-redeployable
e. customers are loyal to a particular seller
d
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Using the bathtub analogy to understand what determines the number of unemployed workers, the stock variables are
A) the number of workers finding jobs and the number of workers separating from their jobs. B) the number of workers separating from their jobs and the number of unemployed workers. C) the number of unemployed workers and the number of workers finding jobs. D) the number of workers finding jobs, the number of workers separating from their jobs, and the number of unemployed workers.
In the pivotal Supreme Court decision Munn v Illinois (1877), the court held that only natural monopolies were subject to federal government regulation
Indicate whether the statement is true or false
Which statement is true?
A. The monopolistic competitor is often a large firm. B. Most firms in the U.S. are not monopolistic competitors. C. Price discrimination is impossible under monopolistic competition. D. None of these statements are true.
If the absolute price elasticity of demand is 2.0, a 10 percent decrease in price will increase quantity demanded by
A) 10 percent. B) 20 percent. C) 5 percent. D) 12 percent.