A profit-maximizing monopolist operates where demand is:
a. inelastic
b. unit elastic.
c. elastic.
d. infinitely elastic.
c
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Congress has divided the authority to police mergers between the Antitrust Division of the U.S. Department of Justice (AD) and the Federal Trade Commission (FTC). How is this authority divided?
A) The AD always renders its opinion on any proposed merger first. If the AD approves the merger, the case then goes to the FTC for final approval. If the AD disallows the merger, the decision stands and the FTC does not become involved. B) Both the AD and the FTC are responsible for merger policy. C) The AD establishes the guidelines that are used to evaluate proposed mergers; the FTC uses these guidelines to decide whether a proposed merger will be allowed to take place. D) The AD decides whether proposed horizontal mergers will be challenged; the FTC decides whether proposed vertical mergers will be challenged.
All the below choices are examples of promoting a firm's product, except
a. Advertising b. Pricing c. Discount coupons d. End-of-aisle displays
Economies of scale implies that increases in the scale of operation are associated with
a. decreasing total cost b. decreasing fixed cost c. decreasing average total cost d. increasing average total cost e. decreasing average variable cost
Which of the following events will cause the smallest change in the real exchange rate (?)?
A) a 6% drop in E and a 6% increase in the foreign price level (P) B) a 6% increase in the domestic price level (P) and a 6% reduction in P C) a 6% drop in E and a 6% reduction in P D) a 3% increase in E E) a 2% increase in E and a 2% increase in P