Which of the following statements about competition in a market is true?
A) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production.
B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible.
C) Competition forces firms to add only low profit margins to their costs of production.
D) Competition forces firms to outsource the production of their labor-intensive products.
A
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Price supports are generally used in
A) labor markets. B) industrial markets. C) housing markets. D) markets for services. E) agricultural markets.
Which of the following is a feature of an M-Form organization?
a. divisions can respond more easily to changes in customer demand b. it is difficult to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
A demand curve usually has a
a. negative slope because price and quantity demanded are inversely related b. negative slope because as price rises, demand falls c. positive slope because price and quantity demanded are positively related d. positive slope because price and quantity demanded are inversely related e. slope of zero because there is no change along a demand curve when everything else is held constant
What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A) An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. B) A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. C) An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker. D) An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.