In the absence of natural monopoly conditions, firms in a contestable market will
a. choose their price and output competitively.
b. be able to successfully form a cartel and share monopoly profit.
c. will not produce their output at the lowest possible cost.
d. produce more than a monopoly but less than a competitive industry.
a. choose their price and output competitively.
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A horizontal merger involves
A) the joining of two firms at different stages of the production process. B) the separation of management from ownership. C) the joining of two firms selling similar products. D) the exchange of debt for stock.
Which of following is responsible for investigating fraudulent advertising?
a. Federal Reserve b. Bureau of Standards c. Federal Trade Commission d. Department of Justice.
The federal government placed an upper limit on human organ prices, which is called a
A. Price support. B. Price floor. C. Price ceiling. D. None of the choices are correct.
Assume Bridget's budget constraint is shown in the graph shown. If she has $48 to spend on these two items, then earrings must cost:
A. $12. B. $8. C. $4. D. $6.