The business activities of Firm A confer positive externalities on Firm B, and the business activities of Firm B confer positive externalities on Firm A. If the two firms merged, then
a. their respective markets would move closer to the social optimum.
b. their respective markets would move further away from the social optimum.
c. total surplus in their respective markets would decrease.
d. the merger would serve as an example of a misguided public policy toward externalities.
a
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The federal government began issuing inflation-indexed Treasury bonds in
A. 1913. B. 1989. C. 1997. D. 2001.
Economist Douglass North's definition of institutions:
A. is the rules of the game in a society. B. is the humanly devised constraints that shape human interactions. C. includes laws enforced by the government as well as cultural norms. D. All of these statements are true.
An oligopoly is a market in which at least some firms are large enough to influence market price
a. True b. False Indicate whether the statement is true or false
If the signaling theory of education is correct,
a. workers with more years of formal schooling will earn less than workers with fewer years of formal schooling. b. additional years of formal schooling do not increase a worker's productivity. c. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance. d. men are more likely to earn more than women because men are more likely to have graduated from college.