What is a natural monopoly?
The situation in which technology makes long-run competition impossible is called natural monopoly. In this case long-run average cost curve declines all the way up to the size of the market. Decreasing long-run average costs are inherent in the industry's technology such that a single producer can supply to the entire market. Competition in such cases in not only impossible but inefficient.
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A main reason for the low unemployment rate from 1995 through most of the 2000s was because of
A) higher oil prices. B) the government's policy of tightening immigration policies. C) the rapid development of the Internet industry and other new technologies. D) government's more liberal social benefit programs. E) increased defense expenditures by the government.
The adverse effects of rent controls include
A) keeping rental rates too high in a normal market. B) excessive construction of new rental housing. C) reduced incentive to construct new rental housing. D) increased incentives for people to purchase their own homes.
When output rises, unemployment falls
a. True b. False Indicate whether the statement is true or false
A bank's required reserves equal its
What will be an ideal response?