The market for cigarettes likely has a:
A. highly elastic demand.
B. slightly elastic demand.
C. highly inelastic demand.
D. slightly inelastic demand.
C. highly inelastic demand.
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What is the significance of the mutual interdependence among the firms in an oligopolistic market?
What will be an ideal response?
A common feature of regulated industries is cross-subsidization, which is a situation when one group of customers pays prices above costs while another group of customers pays prices below costs. The one group is subsidizing the other group
Is this practice more consistent with the capture hypothesis or the share-the-gains, share-the-pains theory? Explain.
Two reasons why a few individuals earn very high pay in the sports and entertainment fields are that their
a. marginal productivity is high and entry into those industries is restricted b. marginal productivity is high and the cross-elasticity of demand between their services and the services of other employees is also high c. marginal productivity is high and there is open competition for their talents d. wage elasticity of supply is high and there is open competition for their talents e. marginal productivity is high and they are prohibited from changing employers
Perfect income equality is achieved if each population quintile receives what percent of income?
a. 20 percent b. 10 percent c. 75 percent d. 50 percent e. 100 percent