When demand is highly inelastic and supply shifts to the right, price:
A. increases, quantity sold decreases, and total revenue decreases.
B. falls, quantity sold increases, and total revenue increases.
C. falls, quantity sold increases, and total revenue decreases.
D. increases, quantity sold decreases, and total revenue increases.
Answer: C
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Which of the following is NOT a barrier to entry for a monopoly to exist?
a. The critical resource is owned by a single company b. The costs of production make a single producer more efficient than many producers c. International trade agreements restrict production domestically d. The government grants exclusive rights to a single producer
Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then __________________ has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.
A. no market failure; market failure has occurred. B. market failure; no market failure has occurred. C. no market failure; there will still be no market failure. D. market failure; there will still be market failure.
If the quality of a good improves while its price remains the same, then the value of a dollar
a. rises and the cost of living increases.
b. rises and the cost of living decreases.
c. falls and the cost of living increases.
d. falls and the cost of living decreases.
Suppose two nations are seeking to expand their commercial relations. What options do they have in terms of addressing conflicts in standards? Describe each and what conditions might favor different approaches to setting standards
What will be an ideal response?