When a firm purchases a part of its supplies from any one of a large number of potential suppliers at the current market price without long-term commitments, it is:
A. making a spot market purchase.
B. integrating downstream.
C. practicing arbitrage.
D. integrating upstream.
Answer: A
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"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have
A) a negative slope. B) a positive relationship. C) a direct relationship. D) a horizontal line.
A regulated monopoly facing average cost pricing rule will make the same profit as a firm in ________ market does in the long run
A) an unregulated monopoly B) an oligopoly C) a perfectly competitive D) All of the above answers are correct.
In principle, a cap-and-trade program would
A) cause firms to generate more pollution than their allowed limits. B) cause firms to generate less pollution than their allowed limits. C) raise the production costs of all firms. D) lower the production costs of all firms.
Taxing savings will cause people to save more.
A. True B. False C. Uncertain