economics ch. 8-9

presence of many competing firms.

all of the following are characteristics of a monopoly except a)single seller b)complete control of market price c)barriers to entry d)presence of many competing firms.

clayton act.

an example of antitrust legislation is the

true

a cartel raises the prices of the goods it controls

true

a franchisee pays a certain percent of their revenues to the franchiser.

temporary partnership set up for a specific purpose for a short period of time.

a joint venture is a

false

a startup company is a company owned by a single person

joint revenue

a temporary partnership set up for a specific purpose for a short period of time is known as a

false

a vertical merger involves the merger of two competing firms.

creating legal barriers to entry in an industry.

federal agencies actually decrease competition in an industry by

merger.

if one company purchases 52% of the stock of another company, the transaction is known as a

some partners bear no risks.

in a limited partnership,

true

in a pure monopoly, the seller will charge more than the equilibrium price.

true

in a sole proprietorship, owners pay only personal income taxes on their profits.

corporation.

in the United States, which type of business accounts for the greatest share of revenues?

are composed of many of the same members

interlocking directorates occur when the boards of directors of competing companies

false

interlocking directorates occur when the boards of directors of competing firms buy out similar firms in their industries.

amount of competition a business faces.

market structure describes

provide such things as utilities, public transportation, and cable tv.

natural monopolies are businesses that

monopolistic competition and an oligopoly

non-price competition is a characteristic of both

more stable prices.

one advantage of an oligopoly is

franchiser often provides training.

one of the advantages of purchasing a franchise is that the

false

owning a franchise is less risky than owning an independent business because the franchiser guarantees a certain level of profit.

very large corporations.

shares traded on the New York Stock Exchange tend to be those of

hiring officers to run the business.

the board of directors of a corporation is responsible for

false

the board of directors of a corporation makes most decisions about the company's day-to-day basis.

false

the law of demand does not apply in a monopoly.

false

the purpose of antitrust legislation is to make sure that businesses do not take advantage of their employees.

listed on the New York Stock Exchange.

the stock of the largest companies in the United States is

the owner of the business bears complete legal responsibility for all debt and damages arising from doing business.

unlimited liability means that

advertising

which of the following represents a form of non-price competition?

startup businesses.

entrepreneurs are people who