Most economists support the idea of peak-load pricing on the grounds of
A. fairness in income distribution.
B. efficiency in input usage.
C. equality of opportunity.
D. efficiency in output allocation.
Answer: D
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A disadvantage of virtual banks (clicks) is that
A) their hours are more limited than physical banks. B) they are less convenient than physical banks. C) they are more costly to operate than physical banks. D) customers worry about the security of on-line transactions.
Factoring
A) involves selling stocks and using the proceeds to buy bonds. B) is purchasing accounts receivable at a discount. C) is calculating the optimal par values of stocks and bonds. D) has been declared illegal under the Reform Act of 1994.
Figure 11-1
The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and cost curves facing the Red Cross blood bank. If the Red Cross were to set price and quantity at the level that it would obtain in the long run in a competitive industry, how much blood would it sell?
A. OA B. OB C. OD D. OC
As a group, oligopolists would always earn the highest profit if they would
a. produce the perfectly competitive quantity of output. b. produce more than the perfectly competitive quantity of output. c. charge the same price that a monopolist would charge if the market were a monopoly. d. operate according to their own individual self-interests.