In a contestable market
A) the HHI is usually quite low.
B) the firm in the market usually earns a large economic profit.
C) the firm in the market may play an entry-deterrence game.
D) there are high barriers to entry.
C
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If price of a good rises, what happens to the demand for that good, all other things held constant?
A. The demand increases. B. The demand decreases. C. The demand does not change. D. The outcome depends upon the supply of the good.
Refer to Table 2.3. What can be observed about the given resources?
A) Capital is fixed. B) Capital is variable. C) Capital and labor are both fixed. D) Labor is fixed.
If the slope of an indifference curve between two goods decreases as we move from left to right (dropping all minus signs), we infer that the consumer
a. is less willing to trade away a good when he has a lot of it. b. is more willing to trade away a good when he has a lot of it. c. always tries to keep the percentage of his budget spent on each good constant. d. views one of the goods as inferior.
As the price of a resource decreases,
a. demand for that resource increases. b. the quantity demanded of that resource decreases. c. the supply of that resource increases. d. producers are more willing and able to hire that resource. e. producers are less willing and able to hire that resource.