Assume there is a decrease in the supply of a product produced in a perfectly competitive market. All else constant, in the short run this will cause the profits of firms that produce substitutes for the good in question to increase
Indicate whether the statement is true or false
TRUE
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Which of the following is the best example of a perfectly competitive industry?
A) steel production B) airplane production C) wheat production D) electricity production
Vertical integration can reduce transaction costs through all of the following ways except which one?
A) decreasing the incentive for litigation B) creating managerial diseconomies C) establishing a partnership between the two firms D) increasing information and control
A rational person may remain less than fully informed on an issue to be decided in an election
a. True b. False Indicate whether the statement is true or false
When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A. quantitative tightening. B. qualitative tightening. C. qualitative easing. D. quantitative easing.