If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?

Dominant price leadership exists when

A) one firm drives the others out of the market. B) the dominant firm decides how much each of its competitors can sell. C) the dominant firm establishes the price at the quantity where its MR = MC, and permits all other firms to sell all they want to sell at that price. D) the dominant firm charges the lowest price in the industry.

Which of the following correctly describes a wage-price spiral?

a. An increase in nominal wages causes inflation, and inflation causes workers to demand even higher wages in order to keep their real income constant. This cycle can repeat itself. b. An increase in real wages due to growth in workers' productivity causes inflation, which in turn increases workers' productivity. c. A decrease in prices causes workers to demand higher wages, which in turn puts additional downward pressure on prices. d. An increase in the price level lowers real wages leading to unemployment. This in turn puts downward pressure on prices.