Without any regulation, the natural monopolist will
A) not produce any output.
B) produce to the point at which P = ATC.
C) produce less output than it would if the industry was purely competitive.
D) have an upward-shifting average cost curve.
C
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Refer to Table 2-10. This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand
a. Which country has an absolute advantage in the production of wristwatches? b. Which country has an absolute advantage in the production of rice? c. What is Japan's opportunity cost of producing one wristwatch? d. What is Thailand's opportunity cost of producing one wristwatch? e. What is Japan's opportunity cost of producing one bushel of rice? f. What is Thailand's opportunity cost of producing one bushel of rice? g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce wristwatches? h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce rice?
The amount of interest owed on a loan of $75,000 after a year at an interest rate of 1 percent is:
A. $7,500. B. $75,750. C. $82,500. D. None of these is true.
If an economy is currently operating at its potential level of real GDP, an increase in aggregate demand will
A. increase the price level. B. decrease the price level. C. cause stagflation. D. produce long-run economic growth.
"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by
A) John Maynard Keynes. B) Karl Marx. C) Alfred Marshall. D) Adam Smith.