When a firm obtains market power through barriers to entry created not by the firm, but by the government, it is referred to as:
A) legal market power.
B) regulated market power.
C) firm-biased market power.
D) differentiated market power.
A
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If only one firm operates in a market, and a potential entrant is blockaded from entering the market, then the incumbent firm must
A) have acted to prevent entry. B) be pricing where price equals marginal cost. C) be a natural monopoly. D) be the Stackelberg leader.
Ramsey prices for a budget-constrained (breakeven) multi-product firm will allow the same welfare loss per dollar of contribution to fixed costs for every product
Indicate whether the statement is true or false
In the Keynesian model in which the Keynesian short-run aggregate supply curve exists
A) the short-run aggregate supply curve determines real GDP. B) the aggregate demand curve determines the price level. C) unemployment cannot persist for long periods of time. D) aggregate demand determines real GDP per year.
According to the law of demand, if the price of a good increases, other things being equal, the quantity demanded will decrease
a. True b. False Indicate whether the statement is true or false