If the price of a cola increased by 12% and consumers responded by purchasing 20% less cola, the absolute value of price elasticity of demand for cola would be

The advantages that arise from economies of scale make entry difficult for new firms. As a result, monopolies and oligopolies are often associated with __________ and ___________

a. b and e b. low costs; high prices c. low costs; low prices d. antitrust; laissez-faire e. competition; high prices

Adam Smith

A. argued that capitalism is often confused with democracy. B. wrote Das Kapital. C. said that the entrepreneur is motivated by self-interest. D. coined the phrase: "From each according to his ability, to each according to his needs."