The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ? A. p = ZB. P = MC + Z C. p = MC D. P = MC…
Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ? A. restrict; promote B. restrict; restrict C. promote; promoteD. promote; restrict
In the UK, electricity industry parts are a ____ and other parts are ___ ? A. nationalized; privatizedB. natural monopoly; potentially competitive C. cartel; a sellers’ market D. monopolistic competition duopoly
Sales staff are keen to sell extended warranties because ? A. extended warranties offer value for money. B. the cost of repair will usually exceed the cost of the warrantyC. they are paid commission on each extended warranty they sell.…
A conglomerate merger is a merger of ? A. firms producing the same product B. firms at various stages in production process. C. firm producing complementary productsD. firms producing unrelated products.
Antimonopoly laws are based on the proposition that ? A. increasing market power is the best way to achieve efficiency.B. competition is the best way to achieve efficiency. C. public ownership is the best way to achieve efficiency D. regulation…
The external benefits of using cars are ____ and the external costs are _____? A. low; low B. high; highC. low; high D. high; low
Between 1990 and 1999 car ownership per thousand of the population fell in ? A. Spain B. BelgiumC. USA D. UK
Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ? A. Persuade the regulator to operate in the industry’s interests B. Persuade the regulator to act in the firms interests. C. Bribe…
In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ? A. deregulationB. making markets contestable C. natural monopoly. D. cross-subsidization.