Suppose a dyke is constructed in a river city to prevent floods from affecting the city. In this way, all occupants are made equally safe, regardless of whether they pay taxes. Which characteristics of goods hold or do not hold?
A. Rivalry holds but exclusivity does not.
B. Exclusivity holds but rivalry does not.
C. Neither rivalry nor exclusivity hold.
D. Both rivalry and exclusivity hold.
Answer: C
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Being the first to sell a particular good can give a firm advantages over other firms that sell similar products. What is the name given to these advantages?
A) first come, first served B) follow the leader C) first-mover D) first to market
A price taker is
A) a firm that accepts different prices from different customers. B) a consumer who accepts different prices from different firms. C) a perfectly competitive firm. D) a firm that cannot influence the market price. E) both C and D
Antitrust laws in other countries are much stronger than U.S. antitrust laws
a. True b. False Indicate whether the statement is true or false
A firm that charges a very low price would be practicing predatory pricing if
a. the price allowed only a small profit. b. the price would only be profitable if it succeeded in driving a rival out of the market. c. the price allowed profits that were positive but below those earned by other firms. d. it only offered the low price to its rivals' customers.