Which of the following can lead to the existence of an oligopoly within a particular market?
a. A combination of economies of scale and market demand that creates a barrier to entry
b. The government granting a patent for an invention to a single firm
c. Lack of room in the market for a firm to raise prices by a single penny
d. The market requiring more products than all firms in the market can produce together
a. A combination of economies of scale and market demand that creates a barrier to entry
A combination of economies of scale and market demand can create a barrier to entry in the market, resulting in an oligopoly where there is only room for a small number of firms.
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A firm uses ________ for goods which the consumer takes pride in owning
A) price skimming B) prestige pricing C) penetration pricing D) predatory pricing
Which set of changes will definitely shift the aggregate demand (AD) curve to the right?
A) Business taxes decline and foreign real national income rises. B) Businesses become pessimistic about future sales and the U.S. dollar depreciates. C) Wealth increases and individuals expect higher (future) incomes. D) a and b E) a and c
Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?
a. availability of reliable birth control b. men acquiring additional years of schooling before entering the labor force c. a preference for men to retire when younger d. changing social attitudes about stay-at-home fathers
Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firms in an industry?
What will be an ideal response?