Bigness, or large firms, may benefit consumers in which of the following ways?
A. Larger firms usually charge lower prices than smaller firms.
B. Larger firms with monopoly power definitely have greater incentive to be efficient and innovative.
C. Larger firms may take advantage of economies of scale and scope.
D. Larger firms are more responsive to consumers’ desires.
Answer: C
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Which of the following statements best describes the concept of consumer surplus?
A) "I paid $89 for a microwave oven last week. This week the same store is selling the same microwave oven for $69." B) "Target was having a sale on tube socks so I bought 5 pairs." C) "I sold my hard copy of Harry Potter and the Half-Blood Prince to a used book store for $10 even though I was willing to sell it for $5." D) "I was going to pay $200 for new sunglasses that I had seen at the Oakley store but I ended up paying only $140 for the same sunglasses."
An indifference curve shows all:
A. possible equilibrium positions on an indifference map. B. equilibrium combinations of two products that are obtainable with a given money income. C. combinations of two products yielding the same total utility to a consumer. D. possible combinations of two products that a consumer can purchase, given her income and the prices of the products.