All Else Being Equal, a Firm Will Choose to Make

question 27

True/False

All else being equal, a firm will choose to make or buy simply on the basis of whether it can obtain the resource cheaper by making it internally or by buying it from an external supplier.

Identify sources and types of monopoly power.

Differentiate between monopoly and perfect competition in terms of pricing, output, and market power.

Recognize the role of scarce resources, technology, and scale economies in the formation of monopolies.

Understand the concept of natural monopolies and recognize examples in the economy.

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Definitions:

Norms

Established standards of behavior maintained by a society, regarded as acceptable or typical for its members.

Collective Action

Occurs when people act in unison to bring about or resist social, political, and economic change. Some collective actions are routine. Others are nonroutine. Routine collective actions are typically nonviolent and follow established patterns of behavior in existing types of social structures. Nonroutine collective actions take place when usual conventions cease to guide social action and people transcend, bypass, or subvert established institutional patterns and structures.

Political Protest

An expression of objection or disapproval towards political ideas or actions, often in a public context.

Model Parliament

A historical term or concept relating to representative assemblies or efforts to simulate parliamentary democracy as an educational tool.