When the government is heavily involved in the regulation of business activity, entrepreneurs will be encourage to spend more time and resources on
a. research and the development of better products.
b. keeping their production costs low.
c. rent seeking.
d. productive activities and less on political lobbying.
C
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In our study of monopoly, we found that monopolists can increase profit by segmenting the market and price discriminating (under third degree price discrimination). Now suppose a firm is producing an excludable local public good. Can you justify a form of such market segmentation and price discrimination as efficient?
What will be an ideal response?
The tendency of many people to procrastinate supports the view that people are consistent over time
a. True b. False Indicate whether the statement is true or false
A money back guarantee will be provided by the owners of ___, but not by the owners of ____
Fill in the blank(s) with the appropriate word(s)
Wage and price stickiness
A. creates a surplus or a shortage of real GDP. B. give rise to a vertical long-run aggregate supply curve. C. give rise to a vertical short-run aggregate supply curve. D. prevents the economy from producing its potential level of real GDP.