An antitrust agency is identifying the product market for Good X and determines that Good X and Good Y have a cross-price elasticity of 0.01. As a result of the cross-price elasticity, the antitrust agency is likely to ________ Good Y from Good X's product market as the products ________ compete as close substitutes.
A) exclude; do
B) include; do
C) exclude; do not
D) include; do not
C) exclude; do not
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If the MPC = 0.80, the tax multiplier is
A) -2. B) -4. C) -5. D) -8.
A profit center
a. Is very complicated to run and manage b. Doesn't require a lot of attention from executives at the firm's headquarters c. Requires the parent company's highest degree of attention d. Does not properly incentivize the managers when it comes to their own division's performance
Which of the following is not likely to help a firm motivate its workers to put forth more effort?
A. providing competitive year-end bonuses B. implementing a profit-sharing scheme C. providing a free or subsidized company gym and/or cafeteria D. installing monitoring equipment E. All of these are likely to motivate workers to put forth more effort.
When social costs of an activity exceed private costs
A. this means that resources are being efficiently used. B. a market failure exists. C. the actual price is above the efficient price. D. there is a tendency for resources to be under-utilized.