Which of the following is a strategy that can be used only by vertically integrated firms?
A. Penetration pricing
B. Vertical foreclosure
C. Limit pricing
D. Predatory pricing
Answer: B
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The Federal Reserve's ability to control the amount of demand deposits in the system depends on its ability to
A) clear checks. B) charter national banks. C) print currency. D) regulate bank reserves.
In a price-taker market, profits are
a. the result of consumers being charged arbitrarily high prices. b. a reward for creating value. c. the result of barriers to entry into the market. d. a signal that fewer resources are needed in a market.
Economists assume that a perfectly competitive firm's objective is to maximize its
a. revenue b. quantity sold c. economic profit d. output price
When the price of a commodity falls, we can expect
A. total utility will fall. B. marginal utility of the last unit purchased will fall. C. marginal utility of the last unit purchased will rise. D. purchases will fall because of a change in marginal utility.