Answer the following questions true (T) or false (F)
1. For a natural monopoly, the marginal cost of producing an additional unit of its product is relatively small.
2. The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league.
3. Most pharmaceutical firms selling prescription drugs continue to earn economic profits long after the patents on the prescription drugs expire because they have established a strong foothold in the market.
1. TRUE
2. TRUE
3. FALSE
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The short-run macro model is used most often to determine changes in
a. nominal output b. net output c. gross output d. financial output e. real output.
Once decision makers fully adjust to an increase in the general price level,
a. the actual rate of unemployment will exceed the natural rate of unemployment. b. the actual rate of unemployment will be less than the natural rate of unemployment. c. the rate of output will exceed the economy's long-run capacity. d. output will return to the full-employment level.
A company is selling wacky waving inflatable arm guys for very low prices, why is this?
a. there is a shortage b. there is a surplus c. the company cannot meet consumer demand d. equilibrium price has been reached
Money eliminates the need for a coincidence of wants in trading primarily through its role as a:
A. Unit of account B. Medium of exchange C. Store of value D. Medium of deferred payment