Relative to a competitive situation, if a market lacks competition, economic theory suggests that
a. output will be lower and price higher.
b. output will be higher and price lower.
c. both output and price will be higher.
d. both output and price will be lower.
A
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Refer to the scenario above. Based on the given information, we can conclude that the market for used cell phones in Barylia:
A) has asymmetric information. B) is perfectly competitive. C) is monopolistically competitive. D) has only one seller.
Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for $18, red for $34 and blue for $388
a. 2 b. 5 c. 8 d. 10
The effectiveness of any stimulus program depends on:
a. the nature of the tax only b. the size of the tax and spending multipliers c. the nature of the tax and tax multipliers d. the income group targeted e. the marginal propensity to consume only
Which of the following actions is most likely to cause a rightward shift in a production possibilities curve [PPC]?
a. Shifting from the production of one product to the production of another product b. Shifting all resources to the production of one product c. Employing idle resources d. Using fewer resources in production e. Increasing the technological know-how used in production