"Market power" refers to a firm's ability to:
A. influence the price its competitors charge.
B. raise its price without losing all of its sales.
C. undercut its competitors' prices.
D. force consumers to buy high-priced products.
Answer: B
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When deciding what to use as money, one characteristic to look for is its:
A. convenience. B. exchange value. C. intrinsic value. D. shape.
According to the principle of diminishing marginal utility, increases in income will create ______ happiness at ______ income levels.
a. zero; lower b. less; upper c. more; upper d. less; lower
The LM curve
A. is vertical. B. slopes downward. C. slopes upward. D. is horizontal.
The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a pollution tax equal to the marginal external cost is imposed on gasoline, then the quantity of gasoline produced and consumed equals
A) 0 gallons. B) 5 million gallons. C) 10 million gallons. D) 20 million gallons. E) None of the above answers is correct.