A high degree of concentration in a market suggests that firms in that market:
A. have the power to control prices.
B. are perfectly competitive.
C. cannot act strategically.
D. have formed an illegal cartel.
Answer: A
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A town wants to build a new bridge. Construction firms will submit sealed bids
The town will award the contract to the firm that submits the lowest bid and will pay the firm the amount of the second lowest bid (that is, the town will conduct a second-price procurement auction). So, for example, if Firm A bids $8 million, Firm B bids $9 million, and Firm C bids $10 million then the city will award the contract to Firm A (it submitted the lowest bid) and pay Firm A $9 million (the amount of the second lowest bid). Suppose your firm is willing to build the bridge for a minimum of $9 million. a. Show that bidding $9 million is a better strategy than bidding some amount below $9 million— say, $7 million. b. Show that bidding $9 million is a better strategy than bidding some amount above $9 million—say, $11 million.
Security purchases by citizens of the United States on foreigners markets is
A) a credit item in the current account. B) a debit item in the capital account. C) a credit item in the capital account. D) a debit item in the current account.
In 1950 there were 16 individuals contributing to Social Security for every one person collecting benefits
a. True b. False
One possible reason that the country of Whatsis is trapped in poverty is
a. a lack of mineral wealth b. an honest and functional government c. laws and regulations to help detect fiscal fraud d. a free press e. a civil war