To an economist, the field of industrial organization answers which of the following questions?
a. Why are consumers subject to the law of demand?
b. Why do firms experience diminishing marginal productivities of their inputs?
c. How does the number of firms affect prices and the efficiency of market outcomes?
d. How can government intervention improve industrial production when externalities are present?
c
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If a country's purchases of foreign assets exceeds foreign purchases of domestic assets, that country has
a. positive net exports and positive net capital outflows. b. positive net exports and negative net capital outflows. c. negative net exports and positive net capital outflows. d. negative net exports and negative net capital outflows.
Other things the same, if the real interest rate in a country falls, domestic residents will desire to purchase
a. more capital goods and more foreign bonds. b. more capital goods but fewer foreign bonds. c. more foreign bonds but fewer capital goods. d. fewer capital goods and fewer foreign bonds.
If Mike McCulley puts $500 worth of traveler's checks left over from a vacation back into his checking account
A. M1 decreases. B. M1 increases. C. M1 does not change.
In an efficient market, deadweight loss is ____.
A. maximum. B. minimum. C. constant. D. zero.