The market power of a firm refers to its ability to
A) erect entry barriers in the industry.
B) make a profit even when other firms in the industry are making losses.
C) control its own output level while keeping its price the same as the prices charged by other firms.
D) affect the market price for its industry's output.
Answer: D
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Use the following circular flow diagram to answer the question below.
If box A represents businesses or firms, B the resource market, and C households, and if flow (7) represents goods and services, then flow (6) would represent
A. consumption expenditures. B. goods and services. C. money income. D. resources.
Which of the following statements is correct?
i. The demand curve shows the maximum price people are willing to pay for a given quantity of the good. ii. The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit. iii. Value is what a consumer receives and price is what a consumer pays. A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.
Buying a diversified mutual stock fund allows you to
A) completely avoid all types of risk. B) avoid only random, unsystematic risk. C) avoid only systematic risk. D) avoid risk only when all the stock prices are perfectly correlated.