The strategy whereby a firm makes most of its own inputs is called:
A. economies of scope.
B. horizontal integration.
C. economies of scale.
D. vertical integration.
D. vertical integration.
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Among developed countries, the United States has
A) one of the lower Gini coefficients. B) one of the higher Gini coefficients. C) the most unequal distribution of income. D) an income distribution right about at the median of those countries.
If a monopoly's demand curve shifts to the right, the
A) monopoly will charge a higher price. B) monopoly will charge a lower price. C) monopoly will sell more. D) monopoly's decision cannot be determined.
The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w that maximizes the total wage payment, wL(w). What is the wage-elasticity of labor demand at the maximizing minimum wage?
What will be an ideal response?
Which of the following arguments are frequently used to justify laissez-faire policy?
a. b, c, and e b. Many concentrated markets are contestable. c. There is competition, even in the most concentrated markets. d. Monopolies are inevitable. e. Economic blocs keep prices down.