In a free market economy, the optimal quality of goods and services is determined by
A. | customers |
B. | workers |
C. | firms |
D. | government |
Option: A Explanation : Click on Discuss to view users comments. |
Monopoly exploitation is reduced by regulation that
A. | restricts output. |
B. | enhances product-market competition. |
C. | increases the bargaining power of workers. |
D. | increases the bargaining power of employers. |
Option: B Explanation : Click on Discuss to view users comments. |
The imposition of a per unit tax causes the monopolist's
A. | Average cost and marginal cost curves to shift up, because the per unit tax is like a fixed cost |
B. | Average cost curve to shift up |
C. | Average cost and marginal curves to shift up because the per unit tax is like a variable cost. |
D. | All of the above |
Option: C Explanation : Click on Discuss to view users comments. |
Adam Smith spoke about the famous diamond water paradox to show that
A. | Utility could be the cause of value |
B. | Utility is related to demand |
C. | Utility is related to supply |
D. | Utility could not be the cause of value |
Option: C Explanation : Click on Discuss to view users comments. |
Price taker firms
A. | Do not advertise, because most advertising is wasteful |
B. | Advertise to increase the demand for their product |
C. | Do not advertise because they can sell as much as they want at the current price |
D. | Who advertise will get more profits than those who do not |
Option: C Explanation : Click on Discuss to view users comments. |