When a monopoly is inevitable, the government often:
A. forces it to break into smaller firms.
B. sets a minimum price for the monopolist.
C. sets a maximum price for the monopolist.
D. None of these; monopoly is never inevitable.
Answer: C
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According to Adam Smith's invisible hand
A) markets need the government to intervene. B) forces are constantly pushing markets out of equilibrium C) people coordinate their activities, resulting in equilibrium in the market. D) there is an invisible glove that restricts what markets can do.
Marginal revenue product is measured by
a. MR × price of the good b. MR × MC c. TR / MPP d. MPP × price of the good e. TC / MPP
Higher production indifference curves correspond to larger amounts of one input in relation to a second input
a. True b. False Indicate whether the statement is true or false
Which of the following is often used to describe regional trade agreements that discriminate, giving better tariff treatment to other nations in the agreement over outside nation?
a. super-regionals b. preferential trade agreements c. exclusive trade arrangements d. equity trade agreements