A firm that has substantial monopoly power
A. confronts a perfectly-elastic demand curve.
B. can sell as much as it wants at the price it chooses.
C. can strongly influence the price that it charges for its output.
D. is one of only a few firms in the industry.
C. can strongly influence the price that it charges for its output.
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A supplier of an input is unlikely to have bargaining power if
A) it has a patent on the input. B) many firms can supply the input. C) the input supplied is specialized. D) it is the sole supplier of the input.
The primary problem with the argument that "we agree to be coerced if everyone is coerced" to do an action is _____
a. there is no way to know whether it is true or not b. it only applies to a limited number of situations c. it only applies to actions in the public interest d. there is no way to force everyone else to go along
The aggregate demand curve shows how real GDP purchased varies with changes in:
A. unemployment. B. the price of a particular good. C. the overall price level. D. the interest rate.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower