What are the key components for creating market power in order to capture value?
What will be an ideal response?
In order to capture value through market power, a firm must be able to establish barriers to entry. These entry barriers could take the form of intellectual property rights such as copyright. Other entry barriers may include economies of scale or high switching costs for customers.
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If there is increasing opportunity cost, then when moving downward on a production possibilities frontier, the opportunity cost of the good on the horizontal axis ________ as more of the good is produced
A) increases and the PPF gets steeper B) increases and the PPF gets flatter C) decreases and the PPF gets steeper D) decreases and the PPF gets flatter E) does not change and the PPF gets steeper
If firms in a competitive market are ________ then there is ________ for firms to ________ the industry
A) incurring economic losses; an incentive; exit B) incurring economic losses; no incentive; exit C) making economic profits; no incentive; enter D) making zero economic profit; an incentive; exit
If total Fed assets __________, then reserves have to __________, everything else being equal
A) fall; rise B) rise; fall C) fall; fall D) None of the above.
People who say that they would like to have a job, but have not made an effort to find a job in the past four weeks, are called ________ workers.
A. involuntary part-time B. discouraged C. unemployed D. chronically unemployed