Antitrust laws tend to target restraint of trade as characterized by __________
Fill in the blank(s) with correct word
agreements among competitors to reduce quantities and/or raise prices
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During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everything else constant, how would this affect the market for pork (a substitute for chicken)?
A) The demand for pork would decrease and the equilibrium price of pork would decrease. B) The demand for pork would decrease and the equilibrium price of pork would increase. C) The demand for pork would increase because consumers could afford to buy more chicken and pork. D) The supply of pork would increase and the equilibrium price of pork would decrease.
At every output level, a firm's short-run average cost (SAC) equals or exceeds its long-run average cost (LAC) because
A) diminishing returns apply in the short run. B) returns to scale only exist in the long run. C) opportunity costs are taken into account in the short run. D) there are at least as many possibilities for substitution between factors of production in the long run as in the short run. E) none of the above
According to the figure, if The Rock Shop enters the market, MiiTunes should:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. charge a high price.
B. charge a low price.
C. leave the market.
D. give an ultimatum to The Rock Shop.
Suppose a consumer is willing to pay $20 for one good X, $10 for a second, and $5 for a third, and the market price is $4 . The consumer surplus is:
a. $16 b. $6. c. $1 d. $23.