What type of model would be best if we wanted to analyze the market for fast food? Why?
We know that the industry produces a differentiated product and is not characterized by a single seller; this rules out the models of pure competition and monopoly. There appears to be a large number of small sellers, so the competitive price-searcher model would be the best model candidate. There are a few large chains in the industry, such as McDonald's, but given the number of other national chains, regional chains, and local restaurants, this would imply both low barriers to entry and the inability of any firm to exert market power.
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The most important purpose of a market is to
A. bring buyers and sellers together so they can argue. B. bring buyers and sellers together so they can barter. C. increase the sellers' wealth. D. bring buyers and sellers together so they can trade.
For almost 70 years international trade policies have been governed
A) by the World Trade Organization. B) by the International Monetary Fund. C) by the World. D) by an international treaty known as the General Agreement on Tariffs and Trade (GATT). E) by the North American Free Trade Agreement (NAFTA).
Which of the following best describes what will happen to equilibrium if large numbers of people cancel cable television subscriptions in exchange for subscriptions to on-demand movies and televisions providers like Netflix and Hulu?
a. A change in tastes away from cable television causes a leftward shift in the demand curve, a decrease in the equilibrium quantity, and an increase in the equilibrium price. b. A change in tastes away from cable television causes a rightward shift in the demand curve, a decrease in the equilibrium quantity, and a decrease in the equilibrium price. c. A change in tastes away from cable television causes a leftward shift in the demand curve, an increase in the equilibrium quantity, and a decrease in the equilibrium price. d. A change in tastes away from cable television causes a rightward shift in the demand curve, a decrease in the equilibrium quantity, and a decrease in the equilibrium price.
Any place where factors of production are bought and sold is a:
A. Private-goods market. B. Stock market. C. Product market. D. Factor market.