Mergers of firms in an industry tend to:
A. Transform monopolistic competition into pure competition
B. Transform monopolistic competition into oligopoly
C. Reduce the Herfindahl index for the industry
D. Break up an oligopoly
B. Transform monopolistic competition into oligopoly
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If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
a. Price would increase, and quantity would decrease. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would decrease, and quantity would increase.
The aggregate-demand curve shows that a decrease in the price level
a. decreases the dollar value of goods and services demanded in the economy. b. decreases the real value of goods and services demanded in the economy. c. increases the dollar value of goods and services demanded in the economy. d. increases the real value of goods and services demanded in the economy.
Government expenditures for Social Security and unemployment insurance are, for GDP accounting purposes, considered:
A. transfers, and are included in government spending as part of GDP. B. transfers, and are not included in government spending as part of GDP. C. purchases, and are not included in government spending as part of GDP. D. purchases, and are included in government spending as part of GDP.
Per-unit production cost is determined by dividing output by total input cost.
Answer the following statement true (T) or false (F)