Figure 9.6In Figure 9.6 if price is P1, then the industry will:
A. expand.
B. contract.
C. stay the same size.
D. merge.
Answer: B
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If two goods are ________, then an increase in the price of one leads to ________ in the quantity demanded of the other
A) complements; a decrease B) complements; no change C) substitutes; a decrease D) substitutes; no change E) normal; an increase
Provide some real-world examples of price discrimination in action
What will be an ideal response?
Natural monopolies are monopolies that are based on
A. patents. B. control over a strategic natural resource. C. extensive economies of scale in production. D. copyrights.
In an economy in which labor is mobile and homogeneous, the wages between industries:
a. will be equal. b. will be very unequal. c. will be less in the export industry. d. will be unequal because in some firms the management is more fair to its workers.