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.
C
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A problem with the use of the market system is that
a. it is too careful in conserving society’s resources. b. it does not stimulate people to work hard and to be efficient. c. it results in an unequal distribution of property and income. d. All of these.
Which of the following is true of vertical integration?
a. It leads to the formation of larger firms from smaller ones. b. It occurs when a firm adds more layers of management. c. It occurs when firms try to buy up their competitors and corner the market. d. It has no effect on the internal organization of a firm; it only affects outside markets. e. It occurs when a firm buys another firm in a completely unrelated market.
Which of the following is not something that John Maynard Keynes used to describe an economist? a. He must be a mathematician, historian, statesman, and philosopher in some degree. b. He must understand symbols and speak in words
c. He must only contemplate in abstract and general terms. d. He must study the present in light of the past for purposes of the future.
Which of the following is NOT necessary for price discrimination to occur?
A) The firm must be able to separate the market into identifiable groups. B) The firm must be selling a durable good. C) The firm must have a downward sloping demand curve. D) The firm has to be able to prevent resale of the product or service.