Competition has driven the economic profits in the video rental business to zero. Surya Bacha, who owns a video rental business, would be better off leaving the industry for another alternative
Indicate whether the statement is true or false
FALSE
You might also like to view...
If marginal costs differ quite substantially from average total costs, then using a cost-plus pricing schedule will not lead to the profit maximizing price
Indicate whether the statement is true or false
The textbook states that in attacking moral hazard, having both risk-based capital requirements and risk-based deposit insurance premiums
A) is necessary, to deal with the problem from both sides of the bank's balance sheet. B) is redundant and that one of the policies should be ended. C) is necessary in order to deal with the moral hazard of both bankers and depositors. D) may be redundant in theory but advisable in practice given the difficulty of measuring risk.
For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment, and the long-run income response tends to be smaller
Industries that face demand behavior of this type are known as: A) natural monopolies. B) cartels. C) cyclical industries. D) constant-cost industries.
The mixed economy is the dominant economic system in the world because
a. custom and religion have no influence on economic decisions in these systems b. pure capitalist economies have placed more control in the hands of individuals in recent years c. there is public (i.e., governmental) ownership of resources but regulation of government by individuals reduces some of the flaws of pure capitalism d. there is private ownership of property but government regulation of individuals reduces some of the flaws of pure capitalism e. governments in pure command economies have increased their control over decision-making in recent years