The assessment by George Stigler concerning the tradeoffs between "market failure" and "political failure" in the American economy provides support for which of the following solutions to the problems of monopolies?
a. public ownership of monopolies
b. government regulation of monopolies
c. government incentives to promote competition in monopolized industries
d. doing nothing at all
d
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Overbidding in a second-price sealed-bid auction is likely to result in a ________
A) negative consumer surplus B) positive consumer surplus C) zero producer surplus D) negative producer surplus
What is pricing to market? Where is it most prevalent?
What will be an ideal response?
Suppose we wish to examine the determinants of the equilibrium real wage and equilibrium level of employment (N). In a graph with the real wage on the vertical axis, and the level of employment on the horizontal axis, the price-setting relation will now be
A) a vertical line. B) a horizontal line. C) an upward sloping line. D) a downward sloping line. E) kinked at the natural rate of unemployment.
________ is a good measure of what society gives up by using resources to produce more of a good or service.
A. Marginal cost B. Total cost of production C. Marginal revenue product D. Marginal revenue