Procter & Gamble Co is a major soap producer. All of the following, except one, would shift its supply curve of liquid soap to left. Which is the exception?
a. an increase in the price of bar soap
b. an increase in the price of a key ingredient of liquid soap
c. environmental regulations force Procter & Gamble to use a more costly technology to produce liquid soap
d. a decrease in the price of liquid soap
e. an increase in the wage rate for factory workers who produce liquid soap
D
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The major characteristic of a monopoly is
a. the degree of control over price it can exercise. b. its ability to produce numerous products. c. its price elasticity of demand. d. its source of revenue.
When the marginal revenue curve intersects the horizontal axis
A) demand is relatively elastic. B) demand is relatively inelastic. C) demand is perfectly elastic. D) demand is unitary elastic.
How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?
a. Such competition reduces the ability of a union to achieve wage increases. b. Such competition does not affect the ability of a union to achieve wage increases. c. Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product. d. The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market.
University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum high school GPA and SAT scores. Enrollment at this school will likely be
A) at the equilibrium level. B) below the equilibrium level because of the use of non-price rationing devices. C) above the equilibrium level because of the combination of price and the use of non-price rationing devices. D) none of the above