What does market power refer to?
a) the side effects that may occur in a market
b) the government regulations imposed on the sellers in a market
c) the ability to influence price
d) the forces of supply and demand in determining equilibrium price
Ans: c) the ability to influence price
You might also like to view...
What does the deadweight loss from monopoly measure?
What will be an ideal response?
Assuming no bequests, with a real rate of interest of 10 percent, wealth of $60,000, current income of $70,000, future income of $180,000 and future consumption of $158,000, current consumption must equal ________
A) $158,000 B) $150,000 C) $152,000 D) $130,000
Which of the following statement(s) best describes trade-offs?
a. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish. b. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase. c. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase. d. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish.
Refer to the figure below. Player B can infer that Player A will:
A. choose Up when B chooses Left and Down when B chooses Right. B. always choose Up. C. always choose Down. D. choose Down when B chooses Left and choose Up when B chooses Right.