A monopoly will arise if
A) two out of three of a town's pizzerias go out of business and only one new pizzeria opens.
B) the town council passes a law granting Nick's Pizza the exclusive right to operate in that town.
C) Papa Joe's Pizza becomes the largest pizza producer in town and Nick's Pizza stays small in size.
D) several big pizza chains force several small pizzerias out of business.
E) people decide they like pizza more than before so some pizzerias gain new customers.
B
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Which of the following mergers would most likely be challenged by the Federal Trade Commission?
A) two restaurants in a large metro area B) two largest wireless service providers in the U.S. wireless communication industry C) an automaker and an insurance company D) one oil refinery in the U.S. and another oil refinery in Canada
If a regulatory commission sets the regulated price equal to marginal cost for a natural monopoly,
a. losses will result b. government subsidies will be unnecessary c. the firm will earn economic profits d. new firms will want to enter e. resource use will not be optimal
Data for an economy shows that the unemployment rate is 10 percent, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed in this economy?
A. 1.0 billion B. 800 million C. 80 million D. 200 million
In the price fixing game, when both firms choose their dominant strategy, each firm will generally earn more profits than when both firms choose the alternative strategy.
Answer the following statement true (T) or false (F)