When compared to the profit-maximizing price and quantity supplied, an average-cost pricing policy for a natural monopoly causes the price the monopolist charges to ________ and the quantity it sells to ________.
A. increase; decrease
B. decrease; decrease
C. decrease; increase
D. increase; increase
Answer: C
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At full employment the unemployment rate equals the
A) cyclical unemployment rate. B) structural unemployment rate plus the frictional unemployment rate. C) structural unemployment rate plus the cyclical unemployment rate. D) structural unemployment rate.
If people begin to favor science fiction novels to a greater degree than previously, the demand curve for science fiction novels
A) shifts rightward. B) shifts leftward. C) stays constant. D) can shift either rightward or leftward.
For a competitive firm, the value of the marginal product:
A. increases for each additional worker. B. remains constant across workers. C. is zero when profits are maximized. D. decreases for each additional worker.
Which statement is true?
A. In 1911 the Supreme Court decided to break up the oil and tobacco trusts. B. The rule of reason today is partially in force. C. Until the ALCOA case, the Supreme Court generally held that bigness was all right as long as the company wasn't bad. D. All of the statements are true.