Answer the following statement(s) true (T) or false (F)
1. Social welfare consequences are ambiguous when two or more manufacturers merge to take advantage of economies of scale.
2. When a monopoly supplier acquires a monopoly manufacturer, the vertical merger intensifies the supplier's use of monopoly power over the manufacturer.
3. A buy-out is more likely to delay a rival's reemergence than is predatory pricing.
4. Economic analysis suggests that resale price maintenance is primarily used by manufacturers to keep prices artificially high.
5. A firm has the incentive to cheat on a cartel agreement only when it fears that other cartel members will also cheat.
1. True
2. False
3. True
4. False
5. False
You might also like to view...
Which of the following persons is hedging?
A) A commodity speculator who confines his purchases or sales to futures contracts B) A commodity speculator who confines his market activity to the purchase of futures C) A commodity speculator who confines his market activity to the sale of futures D) A farmer who buys September corn futures when he plants corn in May E) A farmer who sells September corn futures when he plants corn in May
Which of the following is true of depository institutions? a. Depository institutions seek to maximize profits
b. Depository institutions do not seek to maximize profits. c. Depository institutions do not make loans. d. Depository institutions make loans. e. Depository institutions receive funds primarily through customer deposits
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3 and the firm produces the output where MR = MC, its profit is:
A. -$300. B. -$600. C. -$900. D. -$1,200.
The characteristics that money should have include:
a. portability, durability, and flexibility. b. durability, flexibility and stability. c. durability, portability, and non-homogeneity. d. scarcity, portability, and divisibility. e. portability, homogeneity, and flexibility.