Officers of five large building-materials companies meet and agree than none of them will submit bids on government contracts lower than an agreed-upon level. This is an example of:
A. price fixing.
B. vertical restriction.
C. a tying contract.
D. an interlocking directorate.
Answer: A
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When a firm has an accounting profit that is negative, it
A) will never produce output, even in the short run. B) may still have economic profit. C) has total revenue that is less than total cost. D) cannot be producing where price equals marginal cost.
If a price ceiling is not binding, then a. the equilibrium price is above the price ceiling
b. the equilibrium price is below the price ceiling. c. it cannot be legally enforced. d. None of the above is correct because all price ceilings must be binding.
In most years, the foreign financial capital in the United States represented no more than what percentage of the funds used for overall physical investment in the economy?
a. 3% to 5% b. 6% to 10% c. 15% d. 16% to 20%
The key difference between oligopoly and other market structures is the interdependence among producers.
Answer the following statement true (T) or false (F)