Increasing concentration always means an industry has become effectively monopolized
a. True
b. False
Indicate whether the statement is true or false
False
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Explain the output and factor substitution effects of an increase in the price of capital on theDemand for labor by a firm that produces output using both capital and labor
What will be an ideal response?
If consumers reduce the purchase of goods whose relative prices rise (substitution bias), the consumer price index (CPI) will tend to have an upward bias over time (overstates inflation)
a. True b. False Indicate whether the statement is true or false
(Consider This) Which of the following statements is true about the relationship between take- home pay and fringe benefits for U.S. middle-class workers over the past several decades?
A. The ratio of take-home pay to fringe benefits has remained relatively constant. B. The ratio of take-home pay to fringe benefits has risen significantly. C. The ratio of take-home pay to fringe benefits has fallen significantly. D. Both have declined steadily.
In the long run, the main reason that a monopolist can earn positive economic profits while a perfectly competitive firm cannot is:
A. monopolists enjoy greater economies of scale. B. there are no barriers to entry in a perfectly competitive market. C. the monopolist faces an inelastic demand for its product. D. perfectly competitive firms face greater opportunity costs.