In order to be successful in a market economy, entrepreneurs must
What will be an ideal response?
combine resources in a manner that increases their value.
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Refer to the figure above. What is the profit-maximizing quantity that the monopolist should produce if it faces a constant marginal cost of $5?
A) 200 units B) 300 units C) 400 units D) 600 units
Failure to follow the treatment protocol means that
A) the OLS estimator cannot be computed. B) instrumental variables estimation of the treatment effect should be used where the initial random assignment is the instrument for the treatment actually received. C) you should use the TSLS estimator and regress the outcome variable Y on the initial random assignment in the first stage to get predicted values of the outcome variable. D) the Hawthorne effect plays a crucial role.
Only money prices affect incentives; shadow prices do not.
Answer the following statement true (T) or false (F)
According to "Coke Reignites Price War," price discounting (price wars) can destroy oligopoly profits. When profit destruction occurs,
A. Rival oligopolists seek to end it as quickly as possible. B. The entire industry will always collapse. C. Firms are powerless to change prices. D. Firms will wait for one firm to increase prices.