Answer the following statement(s) true (T) or false (F)
1. A monopoly exists when there are no barriers to entry into a market.
2. Pure monopoly is rare.
3. In a natural monopoly, goods are most efficiently produced by one large firm.
4. Alcoa had a monopoly on aluminum because it controlled an important harbor.
5. Monopolists are price takers.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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Autonomous consumption is consumer spending which is based on income levels
Indicate whether the statement is true or false
Technology reduces the average cost of production, so in the long run
i. perfectly competitive firms produce at a lower average cost. ii. the market price of the good falls. iii. firms with older plants either exit the market or adopt the new technology. A) i only. B) i and ii. C) iii only. D) i and iii. E) i, ii, and iii.
Explain how an increase in government expenditure designed to increase aggregate demand can increase potential GDP and aggregate supply
What will be an ideal response?
The Federal Reserve conducts monetary policy
Indicate whether the statement is true or false