A natural monopolist that sets prices equal to marginal cost will:
A. be government owned.
B. incur losses.
C. have zero profit.
D. still make a positive economic profit.
Answer: B
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Assume that beer is an inferior good. If the price of beer falls, then the substitution effect results in the person buying ________ of the good and the income effect results in the person buying ________ of the good
A) more, more B) more, less C) less, more D) less, less
Three landscapers, Allen, Betty, and Christina, are visiting the lawn and garden supply store. Allen is choosing between a mower with a 40-inch blade and a mower with a 28- inch blade. Betty is picking up her mower, which was in for scheduled maintenance. Christina is putting up a For Sale sign advertising her equipment and list of customers. Who is operating in the short run?
a. Allen and Betty b. Betty and Christina c. Allen only d. Betty only e. Christina only
At any given time, the voting members of the Federal Open Market Committee include
a. five of the presidents of the regional Federal Reserve banks. b. the president of the Federal Reserve Bank of New York. c. the seven members of the Board of Governors. d. All of the above are correct.
In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?
A. Microsoft case. B. Standard Oil case. C. U.S. Steel case. D. DuPont cellophane case.