The cartel of oil-producing nations (OPEC) once controlled about 80% of the world petroleum market, but OPEC's market share has declined to about half of its former level. This outcome is a good example of how firms may have:
A) relatively high short-run monopoly power that strengthens in the long run.
B) relatively high short-run monopoly power that declines in the long run.
C) relatively low short-run monopoly power that strengthens in the long run.
D) relatively low short-run monopoly power that declines in the long run.
B
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An inferior good is
a. any good of low quality b. one that consumers buy less of at a higher price c. one that consumers buy less of as their income rises d. one that has few substitutes e. any good made with inexpensive labor
If the United States changed its laws to allow for the legal sale of a kidney, which of the following is likely to occur?
a. The price of kidneys would rise to balance supply and demand. b. The gains from trade would make both buyers and sellers better off. c. Thousands of lives would be saved. d. All of the above are correct.