A key consideration in the government's decision in the Staples/Office Depot case was that:
A. Staples charged lower prices in locations that were close to an Office Depot store.
B. Staples charged higher prices in locations that were close to an Office Depot store.
C. Staples and Office Depot had engaged in explicit price fixing.
D. Staples and Office Depot would be a natural monopoly if they were allowed to merge.
Answer: A
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There is a deadweight loss if a natural monopoly is regulated to use
A) marginal cost pricing and if it is regulated to use average cost pricing. B) average cost pricing and if it is allowed to be unregulated and maximize its profit. C) marginal cost pricing and if it is allowed to be unregulated and maximize its profit. D) None of the above answers is correct.
The balance of trade is measured by which of the following expressions?
a. The value of exported goods and services minus the value of imported goods and services b. The value of income receipts on investments minus income payments on investments c. The value of goods exports minus the value of goods imports d. The value of government spending minus the value of all taxes received e. The balance on capital account plus the balance on current account
In the short run, the perfectly competitive firm will always earn an economic profit when
A) P = ATC. B) P > AVC. C) P = MC. D) P > ATC.
Evaluate from an economic perspective the issue of whether chief executive officers (CEOs) of corporations are overpaid
What will be an ideal response?