Historical note: When DuPont was charged with monopoly control of the cellophane market, it responded by arguing that the relevant market was flexible wrapping materials and that they had no monopoly control of that market. That argument
a. won the day so that it was found not guilty of monopolizing its market
b. was rejected by the Supreme Court and DuPont paid triple damages to its cellophane competitors
c. was rejected by the court system and DuPont was ordered to sell off 50 percent of its cellophane production facilities
d. never made it to the appeals court because DuPont settled out of court which is why they are not in the cellophane market today
e. was rejected because, upon inspection, it controlled 90 percent of flexible wrapping materials as well
A
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A price ceiling
A) is an illegal price. B) is the price that exists in a black market. C) is the maximum price that can legally be charged. D) Both answers A and B are correct. E) Both answers B and C are correct.
A consumer has $50 to spend. He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each. Which of the following combinations of the two goods will exactly satisfy his budget constraint?
A) 3 magazines and 4 DVDs B) 2 magazines and 4 DVDs C) 6 magazines and 1 DVD D) 2 magazines and 2 DVDs
If the consumption of Good A by one person does not decrease the quantity of Good A available for another person's consumption, then the good is said to be
A) nonrival. B) rival. C) nonexcludable. D) excludable.
In Econland total output is $6 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.
A. $24,000; $24,000 B. $30,000; $30,000 C. $30,000; $24,000 D. $24,000; $30,000