What is one reason suppliers might offer a discount for quantity purchases?
A) reduced storage costs
B) lower marginal cost
C) lower marginal benefit
D) price gouging
A
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Some people argue that there are two advantages to holding mutual funds. The first is that mutual funds provide an inexpensive way to hold a diversified portfolio. The second is that because of their expertise mutual fund managers should be able to consistently beat the market. Which of the following does the evidence show?
a. Diversification does reduce risk and mutual funds typically outperform the market. b. Diversification does reduce risk, but mutual funds do not typically outperform the market. c. Diversification does not reduce risk but mutual funds typically outperform the market. d. Diversification does not reduce risk and mutual funds do not typically outperform the market.
"Trade restrictions such as tariffs and quotas are like a blockade that a nation imposes on its own people." Is this statement true?
A) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade. B) No, a blockade will help the residents of a nation achieve a higher income level; trade restrictions will not. C) No, trade restrictions will help the residents of a nation achieve a higher income level; a blockade will not. D) Uncertain, the statement is true if the gains of the residents exceed those of foreigners; otherwise it is false.
To reduce the chance of investigations and orders to cease production, businesses should
A. adhere to government regulations. B. specialize. C. purchase the most up-to-date technology available. D. lobby members of Congress.
The market structure of oligopoly is when
A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of a differentiated product. D) there are many producers of a homogeneous product.