Splitting up a monopoly is often justified on the grounds that
a. consumers prefer dealing with small firms.
b. small firms have lower costs.
c. competition is inherently efficient.
d. small firms produce higher quality products.
c
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Which of the following is the best example of a quota?
A) a limit on the quantity of residential air conditioners that can be imported from a foreign country B) a $150 fee imposed on all imported residential air conditioners C) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment D) a subsidy from the U.S. government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers
In the circular flow model, households supply resources such as labor services in the factor market
Indicate whether the statement is true or false