A network externality refers to a situation where:
A) the value of a product increases as more consumers start to use it.
B) firms collude to sell products at a price higher than the equilibrium market price.
C) a firm that has control over key resources auctions the resources off to other firms.
D) the government interferes to prevent the concentration of market power in the hands of a few firms.
A
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A period of stagflation can be considered as part of the normal aftermath of a
A. decrease in aggregate demand. B. period of high unemployment. C. period of low unemployment. D. period of inward shifting aggregate demand.
The ability of a central bank to set monetary policy instruments is
A) political independence. B) goal independence. C) policy independence. D) instrument independence.
In the long run, a monopolistically competitive firm and a perfectly competitive firm both produce at minimum average cost.
Answer the following statement true (T) or false (F)
Antitrust policy is used to describe government policies and programs that are designed to:
a. promote the creation of trusts, or combinations of independent firms. b. control the growth of monopoly and enhance competition. c. deal with the threat of competitive practices to public interests. d. create an environment in which the government will distrust firms. e. create an environment in which firms will distrust the government.