The income effect refers to the ways in which a change in the price of a good alters the effective buying power of one's income
a. True
b. False
Indicate whether the statement is true or false
True
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Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades vertically integrates with the perfectly competitive distributors, the profit-maximizing quantity will be ________ the profit-maximizing quantity if they did not vertically integrate and the combined firm will earn ________ profit if
they did not vertically integrate.
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) the same as; greater
B) greater than; the same
C) the same as; the same
D) greater than; greater
Suppose a country experiencing hyperinflation for a long period of time chooses to use a historically stable currency, like the U.S. dollar, to increase investor and consumer confidence and provide a stable and secure economic and investment climate. This is an example of _____
a. globalization b. privatization c. dollarization d. standardization
According to the law of supply, when prices increase,
a. demand increases b. quantity demanded increases c. supply increases d. quantity supplied increases
Which of the following is not a form of antitrust policy?
A. regulation of business practices B. blocking mergers C. breaking up monopolies D. price controls