Four automobile manufacturers—Jupiter, Apollo, Orion, and Galaxy—dominate their market. Which action poses the greatest threat to the longevity of the oligopoly?
a. Jupiter buys a chain of gasoline stations around the country.
b. Apollo lobbies for lower tariffs on imported autos.
c. Orion lowers its average total cost by securing a new supplier.
d. Galaxy obtains a patent for a new braking system.
b. Apollo lobbies for lower tariffs on imported autos.
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A WTO member country must offer all other member countries ________ that are offered to any single member country
a. common-market guarantees b. the same trade concessions c. the same basket of commodities d. import substitutions
The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it.
B) less of a good the more it costs to produce it.
C) more of a good the higher its price.
D) less of a good as the required resources become scarcer
To describe recessions as a "cluster of errors" in the economy means
A) markets never clear, even in the best of times. B) something has caused people to systematically misread the signals provided by the market process. C) the laws of supply and demand have failed to work. D) monopolies force people out of work.
Building infrastructure is left to the government since ________
A) the cost of such projects would not be economical for any individual firm B) borrowing costs make such projects prohibitively expensive C) inflation tends to erode the real value of debt D) a natural monopoly would result if this activity were undertaken by an individual private firm