Imperfect competition
A. should always be regulated by the government
B. results in less efficient market outcomes.
C. is a major cause of externalities in the market.
D. means there is no competition in the market.
Answer: B
You might also like to view...
In regulating a natural monopoly, the price strategy that ensures the highest possible output and zero profit is one that sets price
A) corresponding to the demand curve where marginal revenue equals zero. B) equal to average variable cost where it intersects the demand curve. C) equal to average total cost where it intersects the demand curve. D) equal to marginal cost where it intersects the demand curve.
Double markup problems arise when
a. upstream firms have no market power b. downstream firms have market power c. upstream and downstream products are unrelated in demand d. upstream and downstream firm's pricing decisions tend to increase the demand for the other product
Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:
a. marginal utility diminishes. b. marginal utility is constant. c. people will allocate their income among goods so as to achieve the most satisfaction. d. people will allocate their income among goods so that the marginal utilities of all goods is equal. e. people will allocate their income among goods so that the marginal utilities of all goods is zero.
The World Bank obtains the funds it lends by:
a. selling bonds on the international bond market. b. selling bonds to countries it has loaned funds to. c. collecting each country's annual membership fee or quota. d. levying a small tax on every foreign exchange conversion worldwide. e. depending on voluntary subsidies from member nations.