With the passage of time as the availability of an exhaustible resource declines, the cost of extraction of the resource increases
a. True
b. False
Indicate whether the statement is true or false
True
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When a firm obtains market power through barriers to entry created not by the firm, but by the government, it is referred to as:
A) legal market power. B) regulated market power. C) firm-biased market power. D) differentiated market power.
Refer to the scenario above. If both individuals are offered movie tickets worth 40 utils today instead of the gift voucher, then which of the following statements is true?
A) Both Susan and Jim will prefer to retain the gift voucher. B) Both Susan and Jim will prefer the movie tickets over the gift voucher. C) Susan will prefer the gift voucher, while Jim will prefer the movie ticket. D) Jim will prefer the gift voucher, while Susan will prefer the movie ticket.
If a tariff on bikes causes domestic bike prices to rise by 20% and domestic value added in the domestic bike industry to rise by 30%, then
A) the nominal rate of protection of bikes is 20%. B) the effective rate of protection of bikes is 30%. C) the effective rate of protection is higher than the nominal rate. D) All of the above.
A few sellers may behave as if they operate in a perfectly competitive market if the market demand is:
A) highly inelastic. B) very elastic. C) unitary elastic. D) composed of many small buyers.