Ocean Spray is considered to be an oligopoly firm because, until the 1990s, it faced little competition in the market for fresh and frozen cranberries. Why?
A) Ocean Spray had a patent on the production of cranberries that gave the company the exclusive right to market its product for 20 years. The 20-year period ended in the 1990s.
B) Until the 1990s, Ocean Spray controlled almost the entire supply of cranberries.
C) Ocean Spray was able to achieve significant economies of scale in the production of cranberries. Beginning in the 1990s, other firms finally achieved economies of scale as well, but Ocean Spray still controls about 80 percent of the cranberry market.
D) The federal government imposed a high tariff on cranberry imports. During the 1990s the tariff was eliminated, but Ocean Spray still controls about 80 percent of the cranberry market.
Answer: B
You might also like to view...
An increase in the US demand for pound causes
a. An appreciation of the pound b. Depreciation in the dollar c. None of the above d. Both a and b
To promote economic efficiency, government should
A. keep all prices as low as possible. B. keep all prices high so that people will save more money. C. allow the market to set low prices for abundant goods and high prices for scarce goods. D. never interfere with firms’ price setting powers.
Suppose the UK has instituted an expansionary monetary policy to fight unemployment in the economy. The UK has a floating exchange rate.a. If the exchange rate value of the pound remains steady, what are the effects of easy money on British national product and income? What is the effect on the British unemployment rate? Explain.b. Following the monetary expansion, what is the likely pressure on the exchange-rate value of the pound? Explain.c. What are the implications of the change in the exchange-rate value of the pound for British national product and unemployment? Does the change in the exchange rate tend to reinforce or counteract the expansionary thrust of the British monetary policy? Explain.
What will be an ideal response?
Higher interest rates as a result of deficit spending
A. increase the wealth of future generations. B. ultimately have a positive impact on productivity gains and society's standard of living. C. raise growth in investment spending. D. crowd out private investment.