In the 1870s, excess capacity in the railroad industry led to:
a. rates wars.
b. the formation of regional federations to pool traffic or profits.
c. price-fixing.
d. hidden rate-cutting through rebates.
e. All of the above.
e. All of the above.
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Each of the following is a provision of the 1996 welfare reform law except that
A. the federal guarantee of cash assistance for poor children is ended. B. the head of every welfare family would have to work within 2 years or the family would lose benefits. C. after receiving welfare for two months adults must find jobs or perform community service. D. women who have more children while on welfare will have their benefits reduced.
In Figure 8.10, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit-maximizing price of $300 per ticket. What is Fly Smart's total profit as a secure monopoly?
A. $60,000 B. $40,000 C. $44,400 D. $33,600
A monopolistically competitive firm
A. can sell an infinite amount of output at the market-determined price. B. sells a fixed amount of output regardless of price. C. must lower price to sell more output. D. must raise price to sell more output.
If the demand for a good is elastic, then
A) people do not change the quantity they demand when the price of the good changes. B) a change in price leads to a smaller percentage change in the quantity demanded. C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage. D) a change in the quantity demanded is smaller than the change in price. E) the quantity demanded divided by the price exceeds 1.00.