If left alone, a natural monopoly will
a. earn normal profits
b. earn maximum economic profits
c. produce where P = ATC
d. face competition from new entrants
e. go out of business
B
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As the general population has aged, there has been an increase in the number of nursing homes, community health facilities along with the development of home care facilities. All of these factors have produced an increase in the demand for nurses. Simultaneously, improved job opportunities for women other fields have reduced the supply of nurses. Despite these factors, hospitals, the major employers of nurses, have resisted wage increases. The resulting situation can be described as
A. a cost disease in the service sector. B. a shortage of nurses. C. the problem of auxiliary restrictions. D. a wage floor problem.
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket is $25
A) no one will buy a ticket. B) Anya's consumer surplus is $1. C) everyone will buy a ticket. D) consumer surplus will be maximized.
Imports tend to fall whenever a nation's currency appreciates because foreign products become more expensive to domestic consumers
Indicate whether the statement is true or false
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by
A) 15 units. B) 25 units. C) 35 units. D) 50 units.