A chocolate manufacturer raises the price of its chocolate by 12%, and the quantity demanded of its chocolate falls by only 5%. This firm has
A. not been able to prevent its competitors from competing with it on price.
B. some market power.
C. some output power.
D. no monopoly power in the output market.
Answer: B
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Antitrust laws in other countries are weak in comparison to U.S. antitrust laws
a. True b. False Indicate whether the statement is true or false
If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:
A. increase its spending by $300b. B. decrease its spending by $300b. C. increase its spending by $900b. D. decrease its spending by $900b.
Which of the following is considered a key economic influence on the capacity of market economies to promote unprecedented growth?
A) political changes B) religious beliefs C) historical accidents D) free competition
A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when:
A. MRP x /P x equals MRP y /Py equals MRP z /P z equals 1. B. the sum of the MRPs of the three resources is at a minimum. C. the marginal revenue productivity of all three resources is the same. D. the marginal revenue product of the last dollar spent on each of the three resources is the same.