In which of the following market structures must the price and output decisions of an individual firm include the possible price and output reactions of the firm's rivals?
a. Monopoly.
b. Oligopoly.
c. Perfect competition.
d. Cartel.
b
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Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the
A) supply of gasoline would increase. B) demand for gasoline would increase. C) equilibrium price of gasoline would rise. D) Both answers A and C are correct.
A typical market supply curve
a. is identical to the firm's marginal cost curve b. does not reflect any external cost borne by third parties c. is identical to the firm's marginal revenue curve d. reflects external benefits enjoyed by third parties e. is perfectly inelastic
The minimum wage is an example of
A) a subsidy for low-skilled workers. B) a price floor. C) a price ceiling. D) a black market.
Henry George claimed that land-rent taxes would not impair economic efficiency because:
A. They do not result in a change in the amount of land available B. Landowners are, as a group, financially secure and able to pay the taxes C. The supply of land is infinitely elastic D. Rents represent a small part of income paid to American resource suppliers, so taxes on wages and salaries are more disruptive