Compared to a monopolist, the demand curve for a perfectly competitive firm will be
A) as elastic.
B) more elastic.
C) less elastic.
D) perfectly elastic.
B
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One thing that distinguishes normative economic principles from positive economic principles is that:
A. normative principles are pessimistic and positive principles are optimistic. B. normative principles tell us how people should behave, and positive principles tell us how people will behave. C. normative principles tell us how people will behave, and positive principles tell us how people should behave. D. normative principles reflect social norms, and positive principles reflect universal truths.
Suppose an industry is made up of 25 firms, all with equal market share. The four-firm concentration ratio of this industry is
A) 16%. B) 20%. C) 25%. D) It cannot be determined from the information given.
Which of the following is an example of countervailing power at work?
a. The government monopolizes the United States Postal Service. b. Ford and General Motors join forces to raise prices. c. Compaq and IBM merge. d. Microsoft lowers price below cost to drive rivals out of business. e. Big business is met across the bargaining table by big labor.
An employee that works on an assembly line performing the same task again and again is an example of
a. job specialization b. job rotation c. job sharing d. none of the above