The manager of View Your World, a high-end window manufacturer, notices that the cost to purchase glass for their windows in the spot market has increased. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate forward.
B) The manager has less of an incentive to integrate forward.
C) The manager has less of an incentive to integrate backward.
D) The manager has more of an incentive to integrate backward.
D) The manager has more of an incentive to integrate backward.
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Why are property rights so important for markets?
A. Property rights allow companies to have a monopoly. B. Without property rights there are few incentives to improve, create, or build something, because you cannot legally trade it. C. Property rights force others to pay you more for the good or service. D. Those who have property rights are more likely to create more because they will get more money in the market.
Suppose that a regulatory agency helps producers maximize economic profit. This type of regulation coincides with
A) a natural monopoly. B) a marginal cost pricing rule. C) an average cost pricing rule. D) the capture theory of regulation. E) the social interest theory of regulation.
According to the graph shown, if the market goes from equilibrium to having its price set at $10:
A. deadweight loss will occur.
B. seven fewer units will be exchanged.
C. consumer surplus will decrease.
D. All of these are true.
Joan is deciding where to spend her spring break. If she goes to Cancún, Mexico, the trip will give her 9,000 units of utility and will cost her $300. If she travels to Florida instead, the trip will give her 8,000 units of utility and will cost her only $200. Joan will do best going to:
A. Mexico because her total pleasure will be greater. B. Florida because her pleasure per dollar will be greater. C. Mexico because her pleasure per dollar will be greater. D. Florida because her total cost will be lower.