The excess capacity theorem states that society would clearly benefit from a reduction in the number of monopolistic competitors
a. True
b. False
Indicate whether the statement is true or false
False
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In the ultimatum experiment, what are the usual outcomes?
A) Proposer proposes to give the minimum positive amount to the responder in all the rounds. B) Proposer and responder are rational all the time. C) Proposer proposes to give about 30~40% of total amount to the responders. D) Proposer proposes to give 60~70% of total amount to the responders
National income accounts assist
A. Economic policy makers in formulating policies and evaluating performance. B. Analysts in measuring the performance of the stock market. C. Market investors in making more profitable investments. D. Individuals in maximizing their incomes.
Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 16%. If the Fed sells $5 million worth of government securities to the public, the change in the money supply will be
A. -$31.25 million. B. -$21 million. C. -$16 million. D. -$11.75 million.
If the demand for a product increases proportionately faster than the increase in consumers' incomes, then the income elasticity of demand for the product is:
A. Zero B. Greater than zero C. Less than zero D. Equal to 1