The recent merger of Southwest Bell (SBC) and AT&T companies is an example of a

In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of

A) the "multiplier" effect of government expenditures. B) the military-industrial complex. C) the forward and backward linkage effects of certain industries. D) the deterrent effect of the subsidy on foreign competition. E) the economies of scale once the company enters the market.

When the price of a good is higher than the equilibrium price, a. a shortage will exist

b. buyers desire to purchase more than is produced. c. sellers desire to produce and sell more than buyers wish to purchase. d. quantity demanded exceeds quantity supplied.