Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________
A) right; right
B) right; left
C) left; right
D) left; left
C
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The purpose of the Horizontal Merger Guidelines developed by the Department of Justice and the FTC is to prevent customers from being harmed by the increased market power that might result from a merger of two or more firms
Indicate whether the statement is true or false
The factor of production that is always fixed in the short run is
a. the amount of raw materials b. the size of the physical plant c. the number of workers d. energy costs e. quantity of output
Market power may result from
A. Flawed price signals. B. Control of resources. C. Merit goods. D. Antitrust policy.
For a perfectly competitive firm facing the short-run break-even price
A. it should expand production. B. it has an economic profit of zero. C. it should shut down. D. it has a negative accounting profit.