In competitive markets:

A) all exchanges take place involuntarily.
B) there is only one seller and many buyers.
C) prices play a critical role
D) there is no provision for the protection of property rights.


Answer: C) prices play a critical role

Economics

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Which of the following changes would increase the present value of a future payment?

a. a decrease in the size of the payment b. an increase in the time until the payment is made c. a decrease in the interest rate d. All of the above are correct.

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At one unit of output AVC is

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Recall the Application about allegations that the makers of branded drugs made deals with generic drug makers once the patents expired on branded drugs to answer the following question(s).Recall the Application. When a patent ends and generic drugs are introduced, there is downward pressure on price. Therefore, the makers of the brand name drug will:

A. raise their price. B. abandon the product. C. claim the generic is not as good as the patent version of the drug. D. price discriminate.

Economics