In their relationship with stockholders, a firm's managers act
A) as agents.
B) as principals.
C) in loco parentis.
D) as proprietors.
A
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Most U.S. firms face:
A. perfect competition. B. some degree of competition. C. market power resting in a few large firms in every industry. D. no competition at all.
Shopping at a warehouse, such as Sam's Club or Costco, allows its members to pay very low prices on the goods and services they buy. Customers who shop at such a store incur:
A. transaction costs because they must be members to shop there.
B. no transaction costs because they pay prices that are lower than any other location.
C. transaction costs because they must buy a product in bulk.
D. no transaction costs because members can return any item purchased for any reason.
What is an agreement among members of an oligopoly to set prices and production levels called?
(A) Price leadership. (B) Competition. (C) Imperfect monopoly. (D) Collusion.
A firm that is a price taker can:
A. substantially change the market price of its product by changing its level of production. B. sell all of its output at the market price. C. sell some of its output at a price higher than the market price. D. decide what price to charge for its product.