Well-established property rights allow resources to be used efficiently
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Best Lights wants to prevent Bright Lights from entering the light bulb market. If Best Lights advertises that it will always undercut any competitor's price, the effect of advertising ________ Best Lights' profits due to its cost and ________ Best Lights' profits due to a(n) ________ in its demand.
A) decreases; increases; increase B) decreases; decreases; decrease C) increases; increases; increase D) decreases; decreases; increase
If a horizontal merger between two rival firms reduces competition, all of the following are possible except which one?
A) The managers could face personal fines. B) The firms could face civil penalties. C) The managers could face personal fines, but could not be imprisoned. D) The firms could face criminal fines.
Suppose the government imposes a small carbon tax on automakers. But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production. In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply. The result is that the price of autos will ________ and the number of autos sold will ________
Fill in the blank(s) with correct word.
In the very short-run period,
A. the price elasticity of supply is very elastic. B. the price elasticity of demand is very elastic. C. the cross elasticity of demand is very inelastic. D. the price elasticity of supply is very inelastic.