One reason why critics argue that large firms should not be broken up is that in some cases
A. large firms have a concentration of economic power.
B. large firms are less-efficient producers.
C. many smaller firms would be less-efficient producers.
D. there is no economic reason to break up large firms that may have some control over the market.
Answer: C
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Katie wanted to buy a new car. However, she could not decide on a model that suited her needs and was affordable at the same time
She finally decided to buy a Porsche when she learned that two of her colleagues had bought them, although its price exceeded the money she had saved for her car. Explain her behavior.
A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 2nd movie?
A. $1 B. $8 C. $4 D. $2
This curve shows there is a(n) ______ relationship between the quantity of real GDP supplied and the overall price level.
a. neutral
b. positive
c. inverse
d. complementary
If the producer of an information product engages in marginal cost pricing, it earns
A. zero economic profits. B. negative economic profits. C. positive economic profits. D. a normal profit.