Using a broad definition, a firm would have a monopoly if
A) it produced a product that has no close substitutes.
B) it does not have to collude with any other producer to earn an economic profit.
C) it can make decisions regarding price and output without violating antitrust laws.
D) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
D
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Using the "It's not fair if the result isn't fair" principle of fairness, an income tax designed to transfer wealth from the rich to the poor
A) increases efficiency and equity. B) increases efficiency and does not affect equity. C) decreases efficiency and increases equity. D) decreases efficiency and equity.
In a democratic society, the preferences of __________ will often dominate decisions made by direct majority voting
a. elected government representatives b. special interest groups c. rent seekers d. senior citizens e. the median voter
A number of firms who collude to make collective production decisions about quantities or prices is called:
A. a cartel. B. a duopoly. C. market power. D. a joint monopoly.
Which of the following is true?
a. Tangible goods are subject to economic analysis but intangible goods are not b. Intangible goods are just an alternative term for services. c. Goods and services can be made costless by having the government give them away to citizens. d. All goods and services, whether tangible or intangible, are made from scarce resources and are subject to economic analysis.