The hypothesis that suggests that one firm who fears the arrival of competitors is all that is required to experience most of the benefits of perfect competition is the
A. all-about-me hypothesis.
B. rational-expectations hypothesis.
C. contestable-markets hypothesis.
D. law-of-demand hypothesis.
Answer: C
You might also like to view...
Which of the following statements is true?
A) Countries with lower investment in research and development (R&D) are likely to have higher standards of living. B) The Industrial Revolution started in the United States and spread to other parts of the world. C) The Industrial Revolution started in South America and spread to other parts of the world. D) Countries with a higher investment in research and development (R&D) are likely to have higher standards of living.
Which of the following is an example of free riding?
A) An individual who sneaks inside a music concert B) A consumer who buys his groceries from a nearby store C) A tax payer who exercises in the public park near his house D) A club member who makes voluntary contributions to the club
Solutions to the moral hazard problem include
A) low net worth. B) monitoring and enforcement of restrictive covenants. C) greater reliance on equity contracts and less on debt contracts. D) greater reliance on debt contracts than financial intermediaries.
Both the permanent-income and life-cycle hypotheses are based on the crucial assumption of ________ expectations
A) rational B) adaptive C) backward-looking D) forward-looking