An extreme case in which a percentage change in price, no matter how large, results in zero change in quantity is called:
a. perfect inelasticity.
b. perfect elasticity.
c. strong elasticity.
d. weak elasticity.
a. perfect inelasticity.
An extreme case in which a percentage change in price, no matter how large, results in zero change in quantity is called perfect inelasticity.
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If the supply curve of the fringe in the oligopoly market is highly elastic:
a. the dominant firm will command a higher share of market output. b. the price chosen by the dominant firm will be high. c. the dominant firm's profit will be lower. d. the market price for the commodity will be low.
The use of government to supplant market outcomes is called
A) market failure. B) rent seeking. C) free riding. D) efficiency.
Preferential trade agreements have a beneficial trade-diversion effect when they reduce prices for traded goods and stimulate the volume of international trade
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 12.1 below to answer the question(s) that follow. 
Figure 12.1 Refer to Figure 12.1. This competitive firm is currently at Point A on the ATC curve. The firm's move toward an output where ATC will be at point B will make the economy
A. less efficient. B. less stable. C. more stable. D. more fair and the distribution of outcome more equitable.