The FE line
A) is horizontal.
B) is vertical.
C) slopes downward.
D) slopes upward.
B
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When a firm obtains market power through barriers to entry created not by the firm, but by the government, it is referred to as:
A) legal market power. B) regulated market power. C) firm-biased market power. D) differentiated market power.
In the absence of an even-handed legal system, high transaction costs will eliminate many potential mutually advantageous trades and the accompanying gains from
a. division of labor and specialization. b. expansion in the size of the market. c. economies of scale resulting from use of mass production methods. d. all of the above.
Suppose that a new invention decreases the marginal productivity of labor, shifting labor demand to the left. Such an invention would be an example of
a. labor-saving technology. b. labor-augmenting technology. c. revenue technology. d. supply-shifting technology.
A buyer's investment value is the __________ that he or she would be willing to pay for a particular property.
Fill in the blank(s) with the appropriate word(s).