Which of the following statements about the beer industry is correct?
A) Over the last 30 years, technological change has resulted in substantial diseconomies of scale in the industry.
B) In 2000, the minimum efficient scale in the industry was approximately 18 million barrels per year.
C) As a result of an increase in the number of microbreweries, the five largest firms in the industry control less than 50 percent of the market.
D) The market share of microbreweries was estimated to be 20 percent in 1990.
B
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Which of the following characterizes a perfectly competitive market?
A) The market demand curve is vertical. B) The demand for each individual firm's product is perfectly elastic. C) Each firm sets a different price. D) Each firm produces a product slightly different from that of its competitors.
Answer the following statements true (T) or false (F)
1) Each time a manager changes the conditions of a sale, they must consider the problem of adverse selection. 2) The lemons problem is an extreme case of moral hazard. 3) A well-known company's trademark is an example of a signal. 4) In general, moral hazard occurs at the time of the transaction and adverse selection occurs after the participants have already entered into the contract or agreement. 5) The incentive for a cost-plus-award-fee contract are less specific than a cost-plus-incentive-fee contract.
Which of the following is a problem with or a limit on antitrust policy?
a. Competition may not require that many firms b. Abuse of antitrust c. Growth of international markets d. Growing doubt about the economic value of lengthy antitrust court cases e. All of the answers are correct
The four main forms of income that economists have identified include all of the following except
a. wages b. wealth c. rent d. profit e. interest