To be a natural monopoly, a firm must
A) control a key resource input.
B) have economies of scale that are so large that it can supply the entire market at a lower cost than two or more firms.
C) have significant network externalities.
D) be in a government-regulated market.
Answer: B
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Soran is risk averse. If her wealth rises by $100, her total utility increases by 300. If her wealth increases, her total utility will decrease
A) by more than 300. B) by less than 300. C) by 300. D) by some amount that cannot be determined without more information.
The reason why economists do not use experimental data more frequently is for all of the following reasons except that real-world experiments
A) cannot be executed in economics. B) with humans are difficult to administer. C) are often unethical. D) have flaws relative to ideal randomized controlled experiments.
Why should the GDP accounts matter to the average citizen?
Public choice economics is the study of how elected officials are placed in their official capacities
Indicate whether the statement is true or false