During the peak season, when demand for pipeline transport of natural gas at the maximum legally allowable price exceeds the available capacity:
a. buy-sell transactions take place.
b. pipeline owners vertically integrate into gas production.
c. price discrimination becomes prominent.
d. pipeline owners use discretionary powers to ration capacity to shippers.
A
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Which of the following will shift the supply curve for USB flash drives to the right?
A. an increase in the number of sellers B. an increase in consumers' incomes C. an increase in the cost of resources used to manufacture USB flash drives D. an increase in the number of buyers
The reserve requirement is 0.20. What is the simple deposit multiplier?
A) 1 B) 5 C) 0.10 D) 100
Competitive firms cannot individually affect market price because:
A.) There is an infinite demand for their goods. B.) The market demand curve is flat or horizontal. C.) Their individual production is insignificant relative to the production of the industry. D.) The government exercises control over the market power of competitive firms.
Which of the following is not an assumption of the Cournot model presented in the text?
A. Both firms maximize profits. B. If the first firm cuts price, the second firm will follow and if the first raises price, the second will not follow. C. There are two firms in an industry. D. Each firm takes the output of the other firm as given.