Managers of franchises ________ face the problem of free -riding with their system-wide advertising because franchises ________ contractually bound to pay for the advertising.
A) do; are not
B) do; are
C) do not; are not
D) do not; are
D) do not; are
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When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:
A. a recession. B. unemployment. C. inflation. D. an asset-price bubble.
In which of the following market structures does free entry and exit play an important role in the long-run equilibrium outcome? (i) perfect competition (ii) monopolistic competition (iii) monopoly
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)
In this graph, where is the short-run profit-maximizing output located?
a. 0
b. C
c. q*
d. P*
If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, this market is operating in which section of its downward-sloping straight-line demand curve?
A. the section above the point of unit elasticity B. the point equal to unit elasticity C. the section below the point of unit elasticity D. This market show elastic demand which could occur at any point along the demand curve.