A contestable market will always end up as a monopoly in the absence of antitrust protection
Indicate whether the statement is true or false
F
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In the model of monopolistic competition, an increase in industry output will ________ market shares and ________ profits of producers of higher-priced goods and will ________ market shares and ________ profits of producers of lower-priced goods
A) reduce; reduce; increase; increase B) increase; increase; reduce; reduce C) increase; reduce; increase; reduce D) reduce; increase; reduce; increase E) reduce; increase; increase; reduce
Income assistance benefits are
a. taxed at a high marginal rate, in the sense that benefits sharply decrease as earned income increases b. taxed at a 20 percent marginal rate c. taxed at a high marginal rate in order to provide work incentives d. unaffected by increases in earned income e. positively related to income from other sources
Refer to Figure 34.3. The disincentive to work caused by this welfare program
A. Exists at all income levels. B. Ends as soon as any income is earned. C. Ends at $10,000. D. Ends at $5,000 where benefits equal wages.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. area B gets transferred from consumer to producer. B. area (B + C) gets transferred from consumer to producer. C. area (B + C) gets transferred from producer to consumer. D. area B gets transferred from producer to consumer.