Most pharmaceutical firms selling prescription drugs continue to earn economic profits long after the patents on the prescription drugs expire because they have established a strong foothold in the market
Indicate whether the statement is true or false
FALSE
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For a perfectly competitive palm tree nursery in South Carolina, the total revenue curve is
A) downward sloping. B) a horizontal line. C) upward sloping. D) U-shaped. E) undefined because the firm is perfectly competitive.
A third party is a person, or persons, who:
a. consume goods produced from at least two intermediate inputs. b. avoids the transactions of the two principal parties. c. takes risks to avoid externalities. d. internalizes the costs of market failure. e. is imposed upon by the activity of others.
Which of the following correctly describes the concept of free riding?
a. Making a public good available to all for no cost b. Using a public good but leaving it to others to pay for it c. Encouraging the use of city buses by not charging one day per week d. Using a public good without preventing others from using it
Which statement is true?
A. The Federal Open Market Committee has very little power. B. The Federal Reserve rarely raises or lowers the discount rate. C. Our money supply grows at a rate of between three and four percent a year. D. The Federal Reserve rarely changes the reserve requirements.