One barrier to entry that may maintain an oligopoly is
a. government policy designed to limit foreign competition
b. a low minimum efficient scale
c. bounded markup pricing
d. efficiency wages that make it impossible for new entrants to compete profitably
e. executive payoffs
A
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If a household's disposable income increases from $50,000 to $100,000 and its consumption increases from $40,000 to $80,000 . the MPS must be _____
a. 0.4 b. 0.8 c. 0.7 d. 0.2 e. 0.5
Refer to the graph shown. A movement from A to C is most likely to be caused by:
A. an increase in aggregate demand. B. an increase in input prices. C. a decrease in input prices. D. a decrease in aggregate demand.
Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state that
A. neither country has a comparative advantage in the production of any good. B. the two nations should not specialize in the production of goods. C. specialization can lead to a decrease in the production of all goods. D. specialization can lead to an increase in the production of all goods.
Other things being equal, if a once-competitive firm attains a high degree of monopoly power in its product market, then its resource demand will:
A. Become perfectly inelastic B. Remain perfectly elastic C. Become more elastic D. Become more inelastic