Which of the following factors is not a barrier limiting the entry of potential competitors into a market?
A. legally enforced patent rights
B. an inelastic demand for a product
C. economies of scale
D. ownership of a vital resource
Answer: B
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Inflation climbed steadily from 1952 to 1972. A time-series graph with inflation on the vertical axis and time (in years) on the horizontal axis would show
A) the rate of inflation as a horizontal line. B) that inflation was following a decreasing trend line. C) that inflation had a positive trend. D) that inflation had a negative trend.
A government tax rebate of $1,000 would ________ your disposable income by ________
A) decrease; $1,000 B) increase; less than $1,000 C) decrease; less than $1,000 D) increase; $1,000
Exhibit 6-14 Cost curves
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In Exhibit 6-14, a firm finds that it is experiencing numerous managerial and information problems. The position of its short- and long-run average total cost curves suggest that it is operating at a production level:
A. between 0 and 1,000. B. between 1,000 and 2,000. C. between 2,000 and 3,000. D. between 3,000 and 4,000.
Oil price changes are best explained using a model of
A. supply and demand, the effect of expectations, and the cartel effect. B. the cartel effect. C. supply and demand and the effect of expectations. D. the collusive behavior of the big oil companies.