The Agriculture industry is often used as an example of a competitive market model. However, of the four conditions required for perfect competition, one is clearly not present in farming. Which one is the least applicable and why does it not fit the model?
What will be an ideal response?
While most agricultural products are standardized and farmers are price takers, ease of entry and exit are quite difficult. High fixed costs of land and equipment make it hard to enter and exit easily.
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Securities dealers reduce the uncertainty associated with mortgage debt cash flows through the development of
A) convertible mortgages. B) callable mortgages. C) collateralized mortgage obligations. D) tax-exempt commercial paper.
The U.S. tariff law that set off an international trade war in the 1930s was the
A. Bentsen-Gephardt tariff. B. Smoot-Hawley tariff. C. Landrum-Griffin tariff. D. Taft-Hartley tariff.
According to the U.S. Supreme Court's 1945 ruling on Alcoa,
a. all monopolies are illegal b. price fixing agreements are illegal under the rule of reason c. small firms can be found to be in violation of the Sherman Antitrust Act d. "mere size is no offense." e. possession of market power is sufficient for a firm to be found in violation of the Sherman Antitrust Act
Based on the graphs showing price discrimination in movie ticket prices, if the theatre charges $9 per ticket at the evening show, ______.
a. it will maximize profits
b. MR will be greater than MC
c. MR will be less than MC
d. it will sell too few tickets