Economies of scale in production act as a source of:
A) legal market power.
B) natural market power.
C) restricted market power.
D) regulated market power.
B
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All else equal, when oil prices increase, oil exploration processes like horizontal drilling become more advantageous for oil companies, and this will ________ proven reserves of oil and ________ the number of years it will take to deplete the stock
of oil. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
If workers are changing jobs voluntarily and it takes a while for them to find new jobs, they are an example of
a. structural unemployment. b. frictional unemployment. c. technological unemployment. d. None of these.
Market power creates a flawed response to an accurate price signal.
Answer the following statement true (T) or false (F)
If the price of margarine falls, the demand for butter will
A. decrease. B. remain unchanged. C. increase. D. rise at first and then fall.