Earnings of some highly skilled or highly specialized persons can be classified as economic rents

A large majority of the personal computers (PCs) in the United States use an operating system purchased from Microsoft. Microsoft's relationship with PC manufacturers is an example of which of Porter's competitive forces?

A) the bargaining power of suppliers B) the threat from new entrants C) the bargaining power of buyers D) competition from substitute goods or services

Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?

a. Price increases and quantity increases b. Price decreases and quantity increases c. Price increases and quantity increases d. Price decreases and quantity decreases e. No change in price and quantity