Suppliers Who Are Kept Out of the Market Generally Do

question 58

Multiple Choice

Suppliers who are kept out of the market generally do not retaliate because:

• A) government prevents them from organizing.
• B) they aren't hurt by the restriction.
• C) the costs of organizing are higher than those of demanders.
• D) the costs of organizing and lobbying exceed the expected gains.

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Definitions:

Marginal Revenue Product

The increased earnings resulting from the application of an extra unit of a resource, such as capital or labor.

Demand Schedule

A diagram indicating the volume of goods or services that purchasers intend and can afford to buy across a range of prices.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product that is identical across suppliers.

Profit-Maximizing Condition

A state where a firm's marginal cost is equal to its marginal revenue, leading to the highest possible profit.