Economists think of products as being in the same market if they
A. are traded in the same geographic location.
B. cannot be substituted for other goods and services.
C. are highly interchangeable.
D. produced by companies that complete with each other.
C. are highly interchangeable.
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All of the following are true regarding the Federal Trade Commission's (FTC) Bureau of Consumer Protection except which one?
A) It relies on consumers and competitors to report false advertising. B) It is a federal agency. C) It generally tries to convince companies to cease or alter false advertising. D) It cannot bring a civil case against a firm's managers for false advertising.
The monopolist's cost curves differ from those of a perfectly competitive firm in that the:
A. marginal cost curve is downward sloping instead of flat. B. average total cost curve is not necessarily minimized where it crosses marginal cost. C. average variable cost in no longer equal to marginal cost. D. The cost curves are the same for a firm regardless of market structure.
How does a laissez-faire economy decide which consumer gets each of the goods that has been produced?
What will be an ideal response?
Throughout the 1980s, accounting departments in U.S. universities were unable to fill many available faculty positions. This fact suggests that the salaries offered by these departments
a. suffered from the cost disease of the service sector. b. were below the market price for qualified accountants. c. created externalities. d. failed to reflect productivity growth in teaching.