Which of the following is a characteristic of a contestable market?
a. long-run economic profit
b. many firms that are small relative to the market
c. high costs for entry and exit
d. minimum-cost production methods
D
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A money market mutual fund is
A) essentially the same as a checking account. B) a time deposit of $100,000 or less. C) a time deposit of more than $100,000. D) a depository institution that sells shares and buys securities such as U.S. Treasury bills.
Tele-Com, Inc., the nation’s largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
A. demand curve for the Disney Channel shifted to the right. B. supply curve of the Disney Channel shifted to the left. C. demand for the Disney Channel is elastic in this price range. D. demand for the Disney Channel is inelastic in this price range.
Price ceilings result in shortages
Indicate whether the statement is true or false
Tijuana, Mexico is across the border from San Diego, California
It has become a world-leading producer and exporter of television sets and computer monitors, which it assembles in modern factories owned by multinational consumer electronics firms such as Sony. Initially, these electronics were produced in the industrialized countries of their parent companies, and after several years, the production moved to Tiajuana. This is an example of A) the product cycle. B) intraindustry trade. C) the specific factors model. D) the magnification effect. E) None of the above.