In a natural monopoly,
a. society would be better off if antitrust laws were used to create many different firms in the market.
b. the marginal cost curve is positively sloped.
c. if the government requires marginal cost pricing, it will likely have to subsidize the firm.
d. the marginal revenue curve is horizontal.
c
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One reason people store wealth is to help smooth consumption over time
Indicate whether the statement is true or false
Suppose that Year 1 is the base year. The CPI for Year 2 is approximately
A) 100.0. B) 135.0. C) 170.0. D) 240.0.
Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less bowling and more meals out. C. Quinn would consume less of each good. D. Quinn would consume more bowling and less meals out.
Which of the following groups of U.S. residents would likely qualify for SSI benefits?
A. incarcerated murderers B. college students C. new federal retirees D. the disabled