There are generally, in most areas, a large number of qualified physicians whose services are highly personalized. In addition to price, factors such as age, sex, location, and personality influence the choice of physician. Thus, the market is best described as
A. perfectly competitive.
B. a differentiated oligopoly.
C. a monopoly.
D. monopolistically competitive.
Answer: D
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Which of the following would not violate the Sherman Antitrust Act if the rule of reason was used to interpret the act?
a. conspiring to monopolize b. formation of a trust company c. conspiring to restrain trade d. a single firm supplying all of a market with no close substitutes and some barriers to entry e. attempting to restrain trade with a foreign nation
We assume that in the short run in a perfectly competitive market the:
A. price is fixed. B. number of firms is fixed. C. total quantity supplied is fixed. D. All of these are true of the short run.
According to liquidity preference theory, a decrease in the price level causes the interest rate to
a. increase, which increases the quantity of goods and services demanded. b. increase, which decreases the quantity of goods and services demanded. c. decrease, which increases the quantity of goods and services demanded. d. decrease, which decreases the quantity of goods and services demanded.
Refer to Sales Tax. After the tax is imposed, the deadweight loss is equal to
The following questions refer to the accompanying diagram which shows the effects of a sales tax imposed on consumers. The initial price and quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + D + G.
b. area F + G + H.
c. area E + H.
d. area E + H + J.