In a price leadership situation, where one firm sets a price for others to follow, the leading firm is the one with the
a. largest market share
b. highest quality good
c. most elastic demand curve
d. least elastic demand curve
e. most efficient production
A
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Voluntary exchange results in mutual gains.
Answer the following statement true (T) or false (F)
If the current account has a negative balance of $100 and the capital and financial account has a positive balance of $80, there will be ________ in official reserves of ________
A) a decrease; $20 B) an increase; $20 C) an increase; $180 D) a decrease; $180
If two steel firms decide to merge, this merger would be classified as:
a. a horizontal merger. b. a vertical merger. c. a conglomerate merger. d. either a vertical or conglomerate merger depending on the nationality of the companies. e. either a vertical or conglomerate merger depending on the market shares of the two companies.
Marco earns more than Antonio. A legislator proposes taxing Marco to supplement Antonio's income. A libertarian would view this proposal as
a. a way to improve the welfare of all in society. b. a way to enhance Antonio's income in a socially responsible way. c. validation of the role of diminishing marginal utility over the maximin criterion. d. an inappropriate role for government, since government should not redistribute income.