The market power of a firm refers to its ability to
A. make a profit even when other firms in the industry are making losses.
B. erect entry barriers in the industry.
C. affect the market price for its industry's output.
D. control its own output level while keeping its price the same as the prices charged by other firms.
Answer: C
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Ed Sike is tired of working as a special events manager at the college. He quits his price-searcher job to devote himself to studying full time. Ed Sike is now
A) a price taker. B) a price giver. C) unemployed. D) no longer employed. E) All of the above.
Who is affected by externalities? Those receiving external benefits differ from those incurring external costs in that external benefits are associated with
a. government intervention b. market failure c. unclear property rights d. third parties e. free riders