The contestable market theory best applies to
A. pure monopoly.
B. oligopoly.
C. monopolistic competition.
D. perfect competition.
Answer: B
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The producer price index tracks the prices firms receive for goods and services at all stages of production
Indicate whether the statement is true or false
The people most likely to pay little personal income tax to the U.S. government are
A. the middle class. B. renters. C. the very poor. D. earners of wages (as opposed to salaries).
The economy’s self-correcting mechanism appears to be more efficient at curing
A. recessionary gaps by reducing price levels. B. inflationary gaps by reducing price levels. C. unemployment by reducing wage levels. D. inflationary gaps through inflation.
Refer to the given data. What will be the profit-maximizing selling price of the product?
Use the resource demand data shown on the left and the resource supply data on the right in answering the following question:
A. $1.40.
B. $1.60.
C. $1.80.
D. $2.00.