“Intel Inside” accompanies virtually all IBM-compatible computers. Intel manufactures the i3, i5 and i7 chips that are a key component of personal computers. Does Intel have a monopoly?
What will be an ideal response?
To be a monopoly, a firm must not only be the sole producer in the industry, but there must be no close substitutes for the product and no viable potential competitor. While Intel comes close to being the only chip maker, there may well be potential competitors. At least one other company is vying for the chip market, so Intel must innovate or lose its monopoly status. In any case, there is no overwhelming reason why Intel will ward off all future competitors.
You might also like to view...
Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this will cause the budget constraint to
A. rotate inward B. rotate outward C. shift out in a parallel way D. shift inward in a parallel way E. none of the above
Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?
A) If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality. B) Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk. C) Research has shown that most companies will find that a salary system will be more profitable than a commission system. D) It is often difficult to attribute output to particular workers.
Some employers allow new employees to delay their investment in a retirement account for a year or two. This approach puts the cost of saving for retirement in the ________ and the benefit of saving in the ________.
A. present; present B. present; future C. future; present D. future; future
The percentage of the working-age population in the labor force (= employed + officially unemployed) is called the:
A. labor force participation rate. B. employment-population ratio. C. work-activity rate. D. work-nonwork ratio.