Government actions to compel more competition in an industry
A) always entail costs, which must be compared to any gains created by the policy.
B) always have the effect of lowering prices to consumers.
C) cannot benefit anyone if they result in greater inefficiency.
D) will result in lower prices but cannot bring about a larger output.
E) will not succeed because competition, like morality, cannot be legislated.
A
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The construct used to demonstrate efficient use of society's resources is the
a. production possibilities frontier. b. payoff matrix. c. input-output table. d. cost-benefit table.
For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?
+2.75% -27.5% +27.5% -2.75%
Figure 11-8
Given the average cost curve shown in Figure 11-8 for dry cleaning, where Q1 is the quantity demanded in a small town, and Q2 for a larger town, you would expect dry cleaning to be a monopoly
a.
in a small town, but not a large one.
b.
in both large and small towns.
c.
in a large town, but not a small one.
d.
only if the process is patented.
Which of the following is not true?
A) The share of total farm receipts earned by the largest farms has been increasing during the past two decades. B) Productivity in the farm sector has increased dramatically over the past 50 years. C) The own-price elasticity is always negative. D) None of the above (that is, all statements are true).