What is a major characteristic of a natural monopoly?
A. The firm is a single seller of a resource
B. Its sets price equal to marginal revenue
C. There is extensive product advertising
D. There is a large range for economies of scale
D. There is a large range for economies of scale
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A game's outcome is a Nash equilibrium when
a. any attempt to improve one player's payoff will lower the other player's payoff. b. neither player wants to change his strategy, given the strategy chosen by the other player. c. the total payoff to the players is as large as possible. d. the first player has selected his strategy taking the second player's optimal response into account.
An adverse supply shock with a vertical supply of labor curve will
A) raise the price level and leave unemployment unchanged. B) raise unemployment and lower the price level. C) raise both unemployment and the price level. D) lower both unemployment and the price level.
A competitive equilibrium has all of the following properties except
A) MPN = slope of PFF. B) MRS1,C = MRT1,C. C) MRT1,C = MPN. D) MPN = w.
If an oligopolist is part of a cartel that is collectively producing the monopoly level of output, then that oligopolist has the incentive to increase production with the aim of
a. increasing prices. b. increasing profits for the group of firms as a whole. c. increasing profits for itself, regardless of the impact on profits for the group of firms as a whole. d. decreasing costs of production.