A negative externality is something outside the free market system. Which item or items below represent a negative externality?
When the state government gives grant money to a city to build a new bridge
A 9.8 earthquake that destroys a city
The K-12 school system inside a city
When the government opens up a new and beautiful city park
The concentration ratio used by the government’s Anti-Trust Department is designed to measure the market share within the Oligopoly market structure.
This statement is false.
This statement is wrong – it is used to measure firms in monopolist competition
This is a true statement
The statement is wrong – this measures the balance sheet of a firm
Amazon is not always nice to the vendors who sell on its website. Amazon has been known to buy items in bulk and then sell the items at a loss in order to force the vendors to offer the lowest possible prices. What kind of a market structure is Amazon creating with this activity?
They are creating the conditions for an almost near perfectly competitive market since they are squeezing vendor profits to the absolute minimum.
They are creating a cartel situation.
This represents a monopolistic market situation.
They are creating a monopoly market situation.
90 A 9.8 earth quake that destroys a city
( Earthquake may be caused by a number of factors , but will be harmful to everyone in the city. Other options are positive externalities.)
92 The statement is true.
(Anti trust Department makes use of four firm concentration ratio . It is used to indicate the degree to which industry is oligopolistic and the extent of market control held by the four largest firms in the industry.)
93 They are creating a monopoly market situation.
Amazon is using predatory pricing to build it's cutomer base . Their policies squeeze the sellers.It's quest to achieve dominance mirrors a monopoly market situation.
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