When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to:
A. create a barrier to entry for competing firms.
B. create a perfectly competitive market in which to sell its credit card.
C. differentiate its credit card from those offered by other companies.
D. shift the demand curve for competing firms to the right.
Answer: C
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The repo market is most closely related to the
A) federal funds market. B) Treasury bond market. C) Treasury note market. D) commercial paper market.
Regardless of market structure, all firms
A) consider the actions of rivals. B) maximize profit by setting marginal revenue equal to marginal cost. C) produce a differentiated product. D) have the ability to set price.
Why can't a firm in a perfectly competitive industry charge a price above the market-clearing price?
a. Government-imposed price ceilings prevent prices from being raised b. Firms in a perfectly competitive industry face significant barriers to entry. c. Perfectly competitive firms are price searchers. d. Numerous competitors produce the same product and charge the market price.
Import controls in Mexico ____________
a. will ease the pressure on Mexico's foreign exchange reserves if its exchange rate is fixed b. are illegal c. reduce tariffs d. are designed to float the exchange rate e. reduce quotas