Private markets will not provide the efficient quantity of a public good because
A) of the principle of minimum differentiation.
B) public goods are rival and excludable.
C) of rational ignorance.
D) of the free-rider problem.
D
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The practice of tying is used to
a. enhance the enforcement of antitrust laws. b. encourage the enforcement of collusive agreements. c. control the retail price of a collection of related products. d. package products to sell at a combined price closer to a buyer's total willingness to pay.
The slower the marginal utility declines as more of a good is consumed the:
A. larger the opportunity cost of the good. B. smaller the elasticity of demand. C. smaller the opportunity cost of the good. D. greater the elasticity of demand.
If consumption is greater than income, saving must be negative.
a. true b. false
A major prediction of the kinked-demand curve model is:
A. stability of production costs in oligopolies. B. price stability in oligopolies. C. stable purchasing behavior by consumers over time. D. price instability in oligopolies.