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.Management Sciences
Category: Market
When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination
An increase in demand for a product should ?
A. Increase equilibrium price and quantity
B. Decrease equilibrium price and quantity
C. Increase equilibrium price and decrease quantity
D. Decrease equilibrium price and increase quantity
Except for taxes to offset ______ taxes are ______?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary
A shift in supply will have a bigger effect on price than output if demand is ?
A. income elastic
B. income inelastic
C. Price elastic
D. Price inelastic
Economics say that there has to be some from of rationing whenever ?
A. inflation occurs
B. there are externalities
C. merit goods are produced
D. there is excess demand
A monopolistic market has ?
A. many buyers and sellers
B. none of these answers
C. firms that are price takers
D. only one seller
A reduction in the costs of production will ?
A. Lead to a movement along the supply curve
B. Shift the demand curve
C. Shift the supply curve
D. Lead to an extension of supply
A movement along the supply curve may be caused by ?
A. A change in technology
B. A change in the number of producers
C. A shift in demand
D. A change in costs
Merit goods are ?
A. Not provided in the free market economy
B. Under provided in the free market economy
C. Over provided in the free market economy
D. Provided free
A movement along the demand curve may be caused by ?
A. A change in income
B. A change in the number of buyers
C. A change in advertising
D. A shift in supply
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