In 2011, Netflix raised prices on its DVDs and internet streaming plan. The Reed Hastings, CEO of Netflix, believes
a. Netflix is an industry leader thereby making the demand curve inelastic
b. Netflix is an industry leader thereby making the demand curve elastic
c. People are willing to pay more for the good
d. There are many substitutes to Netflix's products
a
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Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:
a. producer surplus is greater than consumer surplus. b. consumer surplus is greater than producer surplus. c. the sum of consumer and producer surplus is maximized. d. consumer surplus is maximized. e. producer surplus is maximized.
Which of the following achieves the efficient use of a common resource?
a) property rights, individual transferable quotas, and subsidies b) individual transferable quotas and copyrights c) property rights, quotas, and individuals transferable quotas d) property rights, quotas, and subsidies
Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way they themselves did. Saving more in response to this is a ________ reason for saving.
A. bequest B. private C. life-cycle D. precautionary
The Herfindahl-Hirschman index is a measure of
A. the degree of collusion among firms in a market. B. the profit margin of an industry. C. market size. D. the degree of concentration among firms in a market.