A Chinese restaurant wants to expand its business by acquiring a neighboring dry cleaner. In this case,
A) eminent domain would likely be used to reduce transactions costs.
B) eminent domain would likely be used to reduce the holdout problem.
C) eminent domain would not likely be used.
D) eminent domain would likely be used because this transaction would increase cooperative surplus.
C
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Cartel members have an incentive to cheat because
a. the cartel does not maximize profit b. the cartel price is the competitive price c. each member's output quota is more than the output it would produce as a non-cartel member d. each member's MR is greater than the cartel's MC e. industry economic profit would be higher under competitive conditions
For the courts, being too big a firm in an industry can be sufficient grounds, using the per se criterion, to charge the firm with violating antitrust laws
Indicate whether the statement is true or false
Banks advertise
a. the real interest rate, which is how fast the dollar value of savings grows. b. the real interest rate, which is how fast the purchasing power of savings grows. c. the nominal interest rate, which is how fast the dollar value of savings grows. d. the nominal interest rate, which is how fast the purchasing power of savings grows.
Use the following graph to answer the next question.
What per-unit profit will this firm receive?
A. $35 B. $45 C. $10 D. $25