A natural monopoly results when a firm has
a. a license
b. a patent
c. official approval to produce a product
d. decreasing average costs over the range of market demand
e. exclusive use of a natural resource
D
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What is meant by comparative statics? Assume that a firm wants to set up a factory. It considers four different locations
The rent of the factory space and the time taken to transport the products from each of the locations to the market is shown in the table below. It is also given that the opportunity cost of time is $10 per hour. a) Which is the optimum location? b) If the opportunity cost of time changes to $30 per hour, is there any change in the optimum? Location Time Taken to Transport Products to the Market (hours per month) Rent ($ per month) 1 180 3,000 2 150 3,200 3 100 3,600 4 60 4,100
The Celler-Kefauver Act deals primarily with which of the following issues?
a. Price discrimination. b. Exclusive dealing. c. Mergers. d. Deceptive advertising. e. Boards of directors.
If the price of output decreases, the equilibrium wage of workers who produce that output will ________ and ________ workers will be hired.
A. increase; more B. increase; fewer C. decrease; more D. decrease; fewer
A persistently declining price level resulting from economic growth and unchanged aggregate demand is called
A. supply-side deflation. B. demand-side deflation. C. ozian deflation. D. secular deflation.