Direct controls are considered inefficient because all firms are forced to pay the same costs
a. True
b. False
Indicate whether the statement is true or false
True
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The legality of which of the following actions would be determined using the rule -of-reason?
A) an agreement with a competitor firm submit a high bid on a contract B) an agreement with a competitor firm to set prices C) an agreement with a competitor firm submit a low bid on a contract D) an agreement with a customer about the markets in which the customer is allowed to resell the product
How do firms benefit by maintaining public relations and influencing the government? Explain with examples
Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:
a. the terms of contract are laid down by a third party. b. the initial distribution of rights between the two parties is unequal. c. services and payments take place over a span of time, and either might choose to default on his obligations at some point. d. the contract distributes gross revenue between the two parties unequally.
A fall in price level will:
a. shift the aggregate demand curve to the right b. shift the aggregate demand curve to the left c. result in a movement upward along the aggregate demand curve d. result in a movement downward along the aggregate demand curve e. change the slope of the aggregate demand curve