Contestable markets improve the performance of imperfect markets with
a. government regulations.
b. the threat of entry.
c. advertising.
d. tacit collusion.
b
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Which of the following is correct about a consumer's optimization problem:
A. In order for a consumer to not be optimizing at a corner solution, it is necessary for us to assume that all goods are essential. B. In order for a consumer to not be optimizing at a corner solution, it is sufficient for us to assume that all goods are essential. C. In order for a consumer to not be optimizing at a corner solution, it is necessary and sufficient for us to assume that all goods are essential. D. None of the above.
Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then AVC equals
A) q. B) q/10. C) 10/q. D) 1.
The term "economic rent" refers to payments
A) to owners of real estate. B) for the use of any resource above its opportunity cost. C) equal to the opportunity cost of the use of land. D) for the use of housing in company owned properties.
Critics of Douglass North's "market opportunity response" model suggest that surges in land sales in the Old Northwest in the 1810s, 1830s and 1850s were due to
a. improved transportation between the Old Northwest and the Northeast. b. rising prices for hogs. c. a reduction of British interference. d. pervasive land speculation.