Which of the following is true under natural monopoly?
A. The marginal cost curve will be above the average cost curve.
B. The monopolist will set price equal to marginal cost and will earn economic profits.
C. Economies of scale exist.
D. Output is produced under conditions of constant cost.
Answer: C
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According to Okun's law, an increase in which of the following is associated with an increase in unemployment?
A) inflation B) output C) expected inflation D) autonomous expenditure E) potential output
With respect to the market clearing price and the equilibrium quantity of good X, increases in the demand for and the supply of good X will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X. B) reduce the market clearing price and the equilibrium quantity of good X. C) increase the market clearing price and the equilibrium quantity of good X. D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of X.
When OPEC meets to set production levels, this organization is playing a
A) negative sum game. B) cooperative game. C) non-cooperative game. D) reaction function game.
Which of the following terms refers to the time it takes for the funds relating to fiscal policy to be dispersed to the appropriate agencies to implement the programs?
a. recognition lag b. implementation lag c. legislative lag d. budgetary lag