A monopoly realizes larger profits than a comparable competitive market by
A. Reducing production and pushing prices up.
B. Producing a greater quantity at the competitive price, thereby increasing profits.
C. Producing at output levels with more favorable cost structures and charging the competitive market price, thereby increasing profits per unit.
D. Setting a higher price at the competitive level of output, thereby increasing total revenue.
Answer: A
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Which of the following would be least likely to lead the Justice Department and the FTC to block a proposed horizontal merger?
A) A finding that the resulting firm might be able to unilaterally affect price and output. B) A finding that the potential for entry into the market by new firms would be adversely affected. C) A finding that the potential for coordination among sellers in the market would be enhanced. D) A finding that resulting cost savings and efficiencies would offset any increase in market power.
Increasing productivity in a society
a. always results in a better quality of life as society views it. b. can never make a nation poorer. c. guarantees that personal services will cost less. d. makes improved personal services available to everyone.
The structural deficit does not depend on the state of the economy
a. True b. False Indicate whether the statement is true or false
The slope of an indifference curve represents the rate at which a person is willing to trade one good for another such that utility remains the same
a. True b. False Indicate whether the statement is true or false