If you add more money to the economy, you might expect to see: More suppliers to meet the demand unleashed by the extra cash A move to oligopoly from the free market as big companies become bigger Fewer suppliers to meet the demand unleashed by the extra cash Drmand move to other products; the extra cash won't affect this supply-demand relationship

The five forces that affect the structure of competition in a particular market do NOT include: bargaining power of buyers. bargaining power of suppliers. potential regulation. existing competitors.

Sofia, a political science student, thinks that the government should intervene to revive declining industries like video stores and print newspapers. The government, she reasons, can resolve the coordination problem of getting the agents in these markets to trade. Do you agree with her? Explain your answer. OA. No, these industries are declining not because of coordination problems but, rather, because of falling demand. OB. Yes, the coordination problems of these industries suggest that the invisible hand is failing, so government intervention would revive these industries. OC. Yes, government intervention is necessary to generate more buyers for these industries, thus coordinating buyers with existing sellers. OD. No, these declining industries are plagued by coordination problems, but government intervention is never the answer.

?There are prime examples about duality where one producer waits for another to produce and change their pricing. For example, Boeing and Airbus. Airbus announced that they will start producing the A380 which is one of the largest passenger carriers in the world. Boeing immediately announced the production of Boeing dream liner 787 which is comparable to the A380. When the prices came out, A380 were forced to reduce their prices to be close to the 787. The question I want to ask is why not have one of the company’s focus their efforts on the smaller jets and leave the other market to the other competitor? Doesn’t that allow them to be monopolists in their fields and eventually increase the prices?