The law of demand
A) is only an assumption that cannot be tested.
B) only applies to necessities, not luxuries.
C) is consistent with human behavior in the world.
D) does not apply to scarce goods.
Answer: C
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As shown in the above table, Sam enjoys sailing and skiing equally well. Which of the following is TRUE?
A) Sam will not consume the same number of hours of sailing and skiing if the price per hour of sailing is more than that of skiing. B) If the prices per hour of sailing and skiing are the same, Sam will not spend the same number of hours at each activity. C) The marginal utility of the 3rd hour of either sailing or skiing is 120. D) None of the above is true.
What is meant by market power? What are the ways in which a monopoly gains market power?
What will be an ideal response?