Walmart is known for entering small towns and driving out its competitors. Using the theory of countervailing power, explain why the growth of Walmart may have actually increased, rather than decreased, efficiency in the United States
According to the theory of countervailing power, Walmart is so large that it can bargain effectively with its
monopolistic suppliers for competitive prices. It is large enough to force its suppliers to act competitively,
something that none of the many small firms it drove out of business was large enough to do.
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Which of the following examples would most likely be an unintended consequence of rent control?
a. Most of the apartments in a building are vacant. b. A landlord is known for renting to people who often are considered “undesirable.” c. Most of the apartments in a building are in a deteriorated state. d. A landlord decides to put in new plumbing for an entire apartment complex.
Which of the following tend to be at a disadvantage in periods of rising prices?
a. debtors. b. people with fixed incomes. c. salespeople whose commissions are very susceptible to price changes. d. All of these.