Schumpeter believes that monopolies use their economic profit to
a. control prices
b. advertise in order to create brand loyalties
c. block the entry of new firms
d. pay high salaries to its executives
e. develop new technologies, which often leads to lower ATC curves and lower prices
E
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Which of the following is nearly synonymous with the economic concept of scarcity?
A) Freedom B) Resources C) Limits D) Security
The period between two successive peaks in a business cycle is called a contraction
a. True b. False Indicate whether the statement is true or false
If renting videos is an inferior good, demand for this service will rise when consumer income falls
a. True b. False Indicate whether the statement is true or false
Frank is given the choice between pizza and hotdogs and chooses pizza. Then, before serving him, his host tells Franks he could have a hamburger. Frank says he wants a hot dog. Which of the properties of Arrow's impossibility theorem does Frank violate?