Which of the following is a feature of a contestable market?
A. There is a single firm in the market serving many consumers.
B. There is a single firm in the market serving many consumers and the market price is equal to marginal cost.
C. The market price is equal to marginal cost.
D. There are several firms in the market serving many consumers.
Answer: B
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In some cases, social regulation may alter individuals' behavior. For example, there is evidence to indicate that as more automobile safety regulations have been introduced, more individuals have begun to drive recklessly
This phenomenon is known as A) the feedback effect. B) the share-the-gains effect. C) the share-the-pains effect. D) the capture effect.
(Consider This) From an economist's perspective:
A. small government is better than big government. B. big government is better than small government. C. regardless of size, government is incapable of achieving allocative or productive efficiency. D. the size of government doesn't matter, as long as spending occurs up to where MB = MC.