In a Small, Isolated Town in a Western State, There

question 224

Multiple Choice

In a small, isolated town in a western state, there are only four dentists. In such a case, we can be confident that

• A) there are high profits in the dental business in this town.
• B) there are no profits in the dental business in this town.
• C) the possibility of new dentists coming to town will limit the profits of the existing dentists.
• D) collusion cannot occur among the four dentists.

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Definitions:

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Final Goods

Products that are purchased for consumption by the end user and are not intended to be resold or used in the production of other goods.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, illustrating the percentage of tax applied to your income for each tax bracket in which you qualify.

Supply-Side Economists

Economists who believe that reducing barriers to production and encouraging the supply of goods and services is the most effective way to stimulate economic growth.