Answer the following statements true (T) or false (F)
1. The rule of reason states that monopolies that behave well are still illegal.
2. Advertising is considered a form of product differentiation.
3. Oligopolies always produce differentiated products.
4. Price stability is common in oligopolies.
5. Perfect competition always provides a lower price than monopolistic competition or an oligopoly.
6. The Clayton Act prohibits price discrimination, if it substantially reduces competition.
7. A four-firm concentration ratio indicates the number of firms in the industry.
8. The Herfindahl Index is calculated by summing the squares of the market shares of each firm in the industry.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
6. TRUE
7. FALSE
8. TRUE
You might also like to view...
Private insurance companies have been out of the flood insurance business for decades. After their departure the government has gone into the business by granting coverage with below-market premiums
Why might this be in inefficient outcome? Comment on the amount of housing that we should expect to see along our nation's coastlines. Also, discuss the degree of danger that this poses for both property and lives when hurricanes strike.
Explain how a bubble can develop in the market for an asset
What will be an ideal response?
Suppose that aggregate consumption is $1,200,000, aggregate investment is $300,000, government spending is $200,000, the value of exports is $200,000, and the value of imports is $100,000. What is the value of Gross Domestic Product (GDP)?
a. $1,800,000 b. $1,700,000 c. $1,600,000 d. $2,000,000 e. none of the above
The goal of utility maximization is to allocate your ________ in order to maximize your ________.
A. utility; spending B. resources; satisfaction C. resources; desires D. time; work