If a company owns plants at various stages of the production process, this is called:
A. a multiplant firm.
B. a conglomerate.
C. a vertically integrated firm.
D. an industry.
Answer: C
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Classifying a good as excludable means
A) that anyone who does not pay for the good cannot consume it. B) that consumption of the good generates no externalities. C) that a producer with patent or copyright protection can exclude any other producer from selling the product. D) that someone can be barred from consuming the good based on race, ethnicity, or some other irrelevant characteristic.
Which of the following conditions hold true for both the perfectly competitive firm and the monopoly at the profit-maximizing output level?
A) MR = P B) MC = ATC C) MC = P D) MR = MC
Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?
A. Capital B. Natural resource C. Land D. Labor
If air travel and bus travel are substitutes,
a. an increase in the price of bus travel will decrease the demand for air travel. b. a decrease in the price of bus travel will decrease the demand for air travel. c. an increase in the price of bus travel will generally have no effect on the demand for air travel. d. an increase in the price of bus travel will shift the demand curve for air travel to the left.