Historically, firms charged with monopolizing their markets often successfully argue in court that
a. a high price is not necessarily harmful to the economy
b. too much competition is cutthroat
c. the relevant market should be more broadly defined
d. the government has no right to interfere in markets
e. their good's cross elasticity of demand is negative
C
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Wages that are higher than the current market wage:
A) reduce the cost of production of various goods. B) lower the aggregate price index. C) dissuade workers from shirking. D) lower the productivity of workers.
If the MPP of labor is positive, the total revenue will grow with each additional worker hired. Yet firms stop hiring before MPP reaches zero because
a. the firm's physical capacity (factory) is limited, that is, the firm's ability to hire is limited by space b. there isn't a sufficient supply of workers at the wage rate paid by the firm c. the wage rate would have to increase, which reduces MPP d. they maximize their gains from hiring at MRP = wage rate and that does not occur at MPP = zero e. marginal revenue product will become negative before MPP does
Given the following data, what is the distance from the origin to the point where the total expenditures (TE) curve cuts the vertical axis?
C = $800 + 0.85Yd
I = $350
G = $420
a.$770
b.$1,570
c.$1,150
d.$1,220
e.?$1,220.85
Symmetric shocks pose fewer problems for nations linked by fixed exchange rates to a base currency. In general:
A) because there are common problems, the economic policy taken by the base currency nation is beneficial for both nations. B) it gives the nation maintaining the peg more autonomy to deal with financial crises. C) the base currency nation can just do nothing, and the issue will resolve itself. D) when there are symmetric shocks, the home nation unlinks its exchange rate from the base currency nation.