To maintain market power, firms will sometimes purchase their competitors.
Answer the following statement true (T) or false (F)
True
When all else fails, a monopolist may simply purchase a potential competitor to maintain market power. An example occurred when Live Nation acquired Ticketmaster in 2009 to eliminate competition in the ticket distribution system.
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Marginal social cost is the
A) price a consumer pays for one more unit of a good. B) cost a producer incurs producing one more unit of a good. C) cost of producing one more unit of a good that falls on someone other than the producer. D) sum of the cost a producer incurs from producing one more unit of a good plus the cost of producing one more unit of a good that falls on someone other than the producer. E) same as marginal cost only if there is an external cost when the good is produced.
Poor families are eligible for financial assistance, without having to demonstrate any additional "need,"
a. under the current welfare system and under a negative income tax. b. under the current welfare system but not under a negative income tax. c. under a negative income tax but not under the current welfare system. d. under neither the current welfare system nor under a negative income tax.
What is the main function of the financial system?
Elasticities are often _______ in the short run than in the long run.
a. higher b. lower c. equal d. congruent