Suppose you observe that output in an industry occurs on the inelastic part of the market demand curve. Which of the following can you conclude from this?
A. The industry is definitely behaving as a monopoly that is protected by barriers to entry.
B. The industry is definitely not behaving as a monopoly that is protected by barriers to entry.
C. The industry could be perfectly competitive.
D. The industry is definitely not perfectly competitive.
E. Both (a) and (d)
F. Both (b) and (c)
G. Both (b) and (d)
H. None of the above
Answer: F
You might also like to view...
Voluntary exchange
A. is usually beneficial to one party, but not the other. B. is always beneficial to both parties. C. is occasionally beneficial to both parties. D. occurs only between nations, not between individuals.
Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 and the equilibrium quantity had increased to 70 units
Other things remaining the same, which of the following could explain this change? A) Shift of the supply curve of Z to the left B) Shift of the supply curve of Z to the right C) Shift of the demand curve for Z to the left D) Shift of the demand curve for Z to the right
Which of the following statements is false?
A. In the case of a negative externality, the market equilibrium is inefficient. B. In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved. C. In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result. D. In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Pitchers who switch teams ________ pitchers who do not switch teams.
A. spend more time on the disabled list, on average, than B. spend less time on the disabled list, on average, than C. spend exactly the same amount of time on the disabled list as D. are less injury-prone than