After having a monopoly in the diamond market for many years, by 2000 the De Beers company faced competition from other companies. To maintain its market share, De Beers
A) lowered the prices of its diamonds to make the market appear less profitable to potential competitors.
B) began buying so-called "blood diamonds" in order to keep these diamonds out of the control of other diamond companies.
C) bought diamond mines in Canada and Russia that had been its competitors.
D) adopted a strategy of differentiating its diamonds. Each of its diamonds is now marked with a microscopic brand.
D
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Which of the following types of goods tend toward elastic demand?
a. luxuries b. durable goods c. goods with multiple uses d. All of these.
Which of the following goods is likely to have the most elastic demand curve?
a. Tobacco products. b. Gasoline. c. Medical care. d. Honda automobiles.
One reason we need government, even in a market economy, is that
a. there is insufficient market power in the absence of government. b. property rights are too strong in the absence of government. c. the invisible hand is not perfect. d. Both a and b are correct.
Union leaders who focus on increasing the size of their union will be aggressive in demanding higher wages.
Answer the following statement true (T) or false (F)