As a manager of an industrywide trade organization, your decisions regarding industrywide advertising are ________ if the participating firms' marginal benefits are similar as there will be ________ disagreement among the firms regarding the amount of the industrywide advertising.
A) easier; less
B) harder; less
C) easier; more
D) harder; more
A) easier; less
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Banks are exposed to interest rate risk primarily because
A) interest rates are very difficult to forecast. B) the maturities of banks' assets and liabilities differ. C) borrowers from banks are prone to default. D) depositors are always searching for a slightly higher interest rate.
All of the following government actions create barriers to entry EXCEPT
A) limiting the number of airlines that may operate at an airport. B) granting a patent to a drug company. C) requiring a pizza parlor to get a business license. D) giving a power company exclusive use of the city's transmission lines.
When the government imposes taxes on buyers and sellers of a good, society loses some of the benefits of market efficiency
a. True b. False Indicate whether the statement is true or false
Reaching an efficient bargain is difficult when the
a. externality is large. b. number of interested parties is large. c. externality is negative. d. government becomes involved.