Following mergers that raised the market shares of two airlines to 79 and 82 percent, respectively, of traffic in their hub cities, prices of service rose and the quantities of service fell, even though in most other markets prices fell and quantities increased. The result suggests that these markets
a. were contestable.
b. were monopolized.
c. become more competitive due to oligopolistic rivalries.
d. had no barriers to entry.
b
Economics
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If a price-searcher firm can sell nine units at a price of $6, or it can sell ten units at a price of $5.75, what is the marginal revenue of the tenth unit?
a. $1 b. $3.50 c. $5.75 d. $6
Economics
If the Fed wants to sell more government bonds than people are willing to buy, then the Fed should
A. Encourage a government agency to buy the bonds. B. Decrease the price it asks for the bonds. C. Switch to another type of monetary policy lever. D. Switch to fiscal policy.
Economics