The main reason(s) monopolies can earn positive profits for a while is(are)
a. assets cannot quickly move in and out of the industry when demand fluctuates
b. an increase in demand does not lead to entry of firms to absorb the extra demand
c. both A&B
d. none of the above
c
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If a good is produced using inputs for which there are no substitutes, the good's
A) elasticity of supply is likely to be small. B) elasticity of supply is likely to be large. C) elasticity of demand will be small. D) elasticity of demand will be large.
The __________ the price of the underlying stock, the __________ the call option premium will be
A) higher; lower B) lower; higher C) lower; lower D) None of the above.
When economic profits are negative in a perfectly competitive industry,
a. we would expect the market supply curve to shift to the left as a result. b. we would expect the market supply curve to shift to the right as a result. c. we would not expect any change in the market supply curve to result. d. we would expect that the market demand curve to shift left as a result
Cartels are: a. difficult to organize
b. difficult to preserve. c. especially unlikely to succeed if the members sell many varied products. d. all of the above.