Which of the following serves to protect a monopoly structure?
a. appearance of close substitute goods
b. creation of technologies that serve to break down barriers to entry
c. continuing exclusive access to resources required to produce the good
d. easier access to resources required to produce the good
e. diseconomies of scale
C
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What replaced the Bretton Woods system?
a. the gold standard b. a pooled currency system c. a free float system d. a managed float system e. fixed exchange rates
Suppose two companies own adjacent oil fields. Under the two fields is a common pool of oil worth $60 million. For each well that is drilled, the company that drills the well incurs a cost of $4 million. Each company can drill up to two wells. What is the likely outcome of this game if each company pursues its own self-interest?
a. Each company drills one well and experiences a profit of $26 million. b. Each company drills one well and experiences a profit of $22 million. c. Each company drills two wells and experiences a profit of $22 million. d. One company drills two wells and experiences a profit of $32 million; the other company drills one well and experiences a profit of $16 million.
Which of the following is not correct?
A. Other things equal, a monopsonist will pay a lower wage rate than will a firm hiring labor competitively. B. A monopsonistic employer will pay workers a wage rate equal to their MRP. C. A purely competitive seller will pay workers a wage rate equal to their MRP. D. An imperfectly competitive seller will employ additional workers as long as the MRP of additional workers exceeds their MRC.
When there is no deflation or inflation,
A. Relative prices remain unchanged. B. Prices of all goods change by the same percentage. C. Average prices do not change. D. Full employment is achieved.