Which of the following is an important side effect of government licensing and other grants of monopoly power?
a. The number of options available to consumers is increased.
b. Competition is enhanced.
c. Firms will produce more efficiently.
d. Rent-seeking is encouraged.
D
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The price elasticity of demand for bread is
a. computed as the change in the price of bread divided by the change in the quantity demanded of bread. b. independent of the availability of close substitutes. c. influenced by whether consumers view bread as a necessity or luxury. d. All of the above are correct.
In situations where businesses discriminate in response to the preferences of consumers, discrimination:
A. is not consistent with efficient markets. B. is consistent with efficient markets. C. will be eliminated by the market. D. will not persist even though it's what the customers want.
A decrease in Social Security payments will
What will be an ideal response?
A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's economic profit?
A) $23 B) $150 C) $1,000 D) $1,150 E) $50