Which of the following is important in determining the extent of competition in an industry?
A) the level of market demand for the industry's product
B) whether or not the industry product is differentiated or standardized
C) the minimum efficient scale of production relative to market demand
D) the minimum level of short-run average total costs of production
C
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If Big Box Store has customers with identical demands, if it practices two-part pricing, the profit-maximizing user fee is ________ the marginal cost of Big Box Store's product.
A) less than B) greater than C) exactly double D) equal to
The industrial North wanted the _______ to buy their goods rather than import goods from ________ so they erected ____________ tariffs.
Fill in the blank(s) with the appropriate word(s).
There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
a. the prices of goods were artificially held down by price controls. b. black markets were legal during the war. c. goods were not subject to price controls. d. gasoline rationing greatly restricted civilians from driving to stores.
Figure 3-16
Refer to . When the price is P2, producer surplus is
a.
A.
b.
A + C.
c.
A + B + C.
d.
D + E.