A computer manufacturer wants its competitors to have a barrier to entry so it can have a monopoly. Which of the following actions would accomplish this goal?
a. producing more computers than any other manufacturer
b. producing computers at a lower cost than most manufacturers
c. buying the only land where the silicone used in new chips is found
d. sharing its technological advancements with competitors
c. buying the only land where the silicone used in new chips is found
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The rate of adjustment between the long run and short run Phillips curve will be determined by
a. the rate of adjustment of price expectations. b. the rate of money growth. c. the level of wage flexibility in labor markets. d. both a and c. e. all of the above.
The double taxation of corporate profit in the United States refers to the fact that
A) tax rates on partnerships are very high. B) depreciation is not a deductible expense. C) corporate profit is first taxed and then any dividends paid are subject to personal income tax. D) proprietorships are not subject to any tax on earnings.
Suppose the price elasticity of demand for iPods is inelastic. What would you expect about the demand elasticity for workers producing iPods? Explain
What will be an ideal response?
Let the production function be q = ALaKb. The function exhibits increasing returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.