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Unformatted text preview: rudimentary
markets in which government can intervene with corrective policy”. True or false?
20. Market power exists when
A. the agents involved in an exchange are “price-takers”.
B. the price at which a transaction is conducted is not independent of the choices of the
C. there are many buyers and sellers.
D. All of the above.
21. “Oligopoly” refers to a setting with
A. a single seller.
B. a single buyer.
C. a small number of large sellers.
D. a small number of large buyers.
22. Important barriers to entry include
A. economies of scale.
B. diseconomies of scope.
C. open access to technology.
D. market power.
23. “Economies of scale” means that
A. production costs rise as the level of production rises.
B. production costs fall as the level of production rises.
C. unit production costs fall as the level of production rises.
D. the unit production cost of one product is lower if it is produced in conjunction with
24. Which of the following is not a...
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- Spring '14