If transactions costs are low, private bargaining will always result in an efficient solution to the problem of externalities
Indicate whether the statement is true or false
FALSE
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The air travel market, which is dominated by a few large firms, is an example of
A) a monopoly market. B) an oligopolistic market. C) a perfectly competitive market. D) a monopolistically competitive market.
Here's a rather specific question concerning U.S. historical agricultural data. Which of the following increased fivefold from 1950 to 1980?
a. number of farms b. use of horses and mules per farm c. number of farmers d. use of chemical fertilizers per acre e. acreage needed to feed horses and mules
The more inelastic are demand and supply, the greater is the deadweight loss of a tax
a. True b. False Indicate whether the statement is true or false
In order for a firm to receive monopoly profits, there must be
A. mutual interdependence among firms. B. barriers to market entry. C. homogeneous products. D. free entry and exit to the market.