A European option differs from an American option in that it may be exercised
A) only on the spot date.
B) only on the expiration date.
C) only on the future date.
D) on any date.
B
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Monopolistic competition is defined as a type of market structure where
A) many firms produce the good. B) firms produce a homogeneous good. C) there are barriers to entry. D) firms can earn positive profit in the long run.
"Today the U.S. telecommunications industry remains heavily regulated by the government as it was some 30 years ago." Do you agree or disagree? Why?
What will be an ideal response?
If the government were to restrict consumption to the efficient level in a market where a negative externality is present, the market outcome:
A. would not be efficient. B. would then be efficient. C. would be equitable. D. None of these statements is necessarily true.
The possibility of a free rider exists:
a. in the presence of external costs and benefits. b. only in the presence of external costs. c. only in the presence of external benefits. d. only in the presence of internal costs. e. only in the presence of a government-produced good.