An externality is an example of a market failure
Indicate whether the statement is true or false
TRUE
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Which act of Congress declared tying contracts, exclusive dealing, and price discrimination illegal?
a. Celler-Kefauver Act. b. Sherman Antitrust Act. c. Clayton Act. d. Robinson-Patman Act.
Which of the following examples of advertising is most likely?
a. SyncElectronics Corp. decides to avoid advertising because of its expense. b. Mulitdome Corp. wants its advertising to decrease the price for its products. c. TransEnd Corp. hopes its advertising will create a more elastic demand curve for its products. d. Cesare Corp. uses 15 percent of its budget on advertising.
When an economy's resources are not fully employed, then it must be true that the:
A. production point is located outside and to the right of the production possibilities curve. B. production point is located along the production possibilities curve. C. production point is located inside and to the left of the production possibilities curve. D. production possibilities curve shifts to the left.
If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, then the firm
A) is earning a profit. B) should shut down. C) should increase output. D) should increase price.