In which of the following market structures is a firm most likely to advertise extensively and fear entry of new firms?
a. perfect competition
b. pure monopoly
c. monopolistic competition
d. oligopoly
e. both perfect competition and monopolistic competition
C
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Human capital is defined as the
A) amount of machinery human beings have. B) number of factories built for human beings. C) accumulated skill and knowledge of human beings. D) accumulated amount of machinery and factories human beings own. E) skills that people are born with.
The price of a PC falls or the price of an MP3 download rises? (Draw the diagrams!)
What will be an ideal response?
Use the above figure. Suppose that a regulatory agency requires this natural monopolist to engage in marginal cost pricing. This would lead to
A) losses, which would drive the monopolist out of business in the long run. B) profits, which would encourage new producers to enter the industry in the long run. C) profits, but new firms cannot enter the industry in the long run due to high barriers to entry. D) losses, which would encourage the monopolist to lower costs in the long run.
Offshoring benefits some firms by reducing their producing costs and maintaining their global competitiveness.
Indicate whether the statement is true or false.