According to the law of one price, identical products should sell for the same price everywhere if
A) transactions costs are zero.
B) consumers have knowledge of the prices charged for products in different markets.
C) there are no tariffs or other restrictions on imports or exports.
D) firms can prevent consumers from engaging in arbitrage.
A
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If the Herfindahl-Hirschman Index in the market for single-use cameras equals 10,000 , then the single-use camera industry is best characterized as
A) a monopoly. B) monopolistic competition. C) an oligopoly. D) perfect competition. E) either a monopoly or monopolistic competition.
The above table shows the short-run total product schedule for the campus book store. When the book store hires the 3rd employee
A) the bookstore is still experiencing increasing marginal returns. B) the book store has already begun to experience diminishing marginal returns, but average product is still rising. C) both marginal and average product have already begun to decline. D) marginal product is at its maximum.