For the same sized substitution effect, own-price demand curves for inferior goods are steeper than own price demand curves for normal goods.
Answer the following statement true (T) or false (F)
True
Rationale: This is true because the substitution and income effects point in the same direction for normal goods -- thus making the slope of the demand curve shallower than it would be in the absence of the income effect (or in the presence of an income effect that points in the opposite direction.)
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Being a monopoly or attempting to monopolize act as sufficient evidence that lead to a guilty verdict under the rule of reason
a. True b. False Indicate whether the statement is true or false
Which of the following explains why economic choices must be made?
A. The factors of production are scarce. B. The factors of production are expensive. C. The factors of production are used inefficiently. D. The factors of production are of inferior quality.
Suppose a monopolist has costs such that when output is 500 units per hour, average costs are $3. If the monopolist is regulated by a policy of average-cost pricing, the monopolist will charge a price of:
A. $3. B. $3 only if the quantity demanded is 500 units per hour at a price of $3. C. $3 only if the quantity demanded is greater than 500 units at a price of $3. D. $3 only if the quantity demanded is less than 500 units per hour at a price of $3.
The role of platform firms is to
A. reduce the amount of information in the price system. B. reduce the amount of market competition among sellers. C. lower transaction costs for buyers and sellers. D. reduce the level of voluntary exchanges in markets.