The DeBeers Diamond Company, which owns most of the South African diamond production, has market power over the diamond trade. This market power was obtained through:
a. illegal means
b. control of a scarce resource.
c. patent protection.
d. government licensing.
b
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A fall in the real interest rate
A) results in a movement along the demand for loanable funds curve. B) shifts the demand for loanable funds curve rightward. C) shifts the demand for loanable funds curve leftward. D) has no effect on the demand for loanable funds curve
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, the principle of rational choice tells us that Tom will buy:
A. more Skittles, raising the opportunity cost of not consuming Skittles. B. fewer Skittles, lowering the opportunity cost of not consuming Skittles. C. fewer Skittles, raising the opportunity cost of not consuming Skittles. D. more Skittles, lowering the opportunity cost of not consuming Skittles.