Entry to and exit from ________ market are easy.
A. a monopoly
B. an oligopolistic
C. a contestable
D. All of the above are correct.
Answer: C
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Amber Crombie is a stay-at-home mom while her husband Fitch works two jobs. What can we clearly conclude?
A) Amber Crombie is unemployed. B) Fitch is employed. C) Amber Crombie is exploited. D) Fitch is exploited. E) All of the above are true.
Discontinuing a Generic Drug Prescott Pharmaceuticals makes a number of generic versions of drugs. When Cymbalta (Duloxetine) lost its patent, Prescott invested $500,000 to obtain FDA approval and $100,000 to certify one of its production lines for its
production. Production of the drug will cost $2,000,000 . Marginal costs for the tablet are $0.10 and they sell for $0.40 per tablet. But many firms have entered and now make Duloxetine causing sales to fall off. Prescott anticipates that it could use this production line for other drugs losing patent protection shortly. If forecasted sales are 5 million tablets, what is the breakeven price? Should Prescott discontinue selling this product?
All of the points inside a production possibilities frontier are ____; all of the points outside the production possibilities frontier are ____.
A. efficient; inefficient B. optimal; irrational C. attainable; unattainable D. rational; zero-cost E. unattainable; efficient
Which of the following is most likely to increase the incentive to invest, produce, and employ others?
What will be an ideal response?