Firm size alone is not the same as market power, as illustrated by
a. a large automaker raising its prices without concern about competition
b. a movie theater in an isolated community facing stiff competition
c. wheat farmers selling their commodity product to farm cooperatives
d. the only newspaper in a metropolitan area facing competition for advertising sales from TV, radio, and the Internet
e. None of the answers is correct
D
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John Maynard Keynes argued that the fundamental problem which led to the world depression was
A) insufficient demand for goods and services. B) a shortage of goods and services. C) negative net exports on goods and services. D) a decreasing supply of goods and services.
What other curve is the same as the market supply curve? Why are the curves the same?
What will be an ideal response?
If the CPI is currently 296.3 and the base year is 1967, how much was the CPI in 1967?
A. 96.3 B. 100 C. 196.3 D. 200
When the government pays part of my university education, it is
A. internalizing an external cost. B. using direct regulation to discourage an external cost. C. using taxes to discourage an external cost. D. subsidizing an external benefit.