Monopolies may earn zero economic profit because of
a. zero marginal cost
b. barriers to entry
c. patents and copyright laws
d. economies of scale
e. government price regulation
E
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In the Interest Parity Condition, Rt - R t = ( - Et)/Et + xt, where Rt - R t is the interest rate differential and ( - Et)/Et is the expected change in the exchange rate, what does xt stand for if it potentially is a market efficient difference
between the two? A) market inefficiency B) risk premium C) forecast error D) tracking error E) excessive volatility
If a bank's ratio of assets to capital is 25 and it's return on assets is -5%, what is its return on equity?
A) -0.2% B) -5% C) -30% D) -125%
If, in an economy, households receive $200 in interest payments and make interest payments of $210, wages equal $500, rental receipts are $300, royalties are $100, profits are $200, depreciation is $50, and indirect business taxes are $50, then gross domestic income is
A. $1280. B. $1190. C. $1110. D. $1180.
The transactions approach to measuring money stresses the role of money as a
A. store of value. B. medium of exchange. C. standard of deferred payment. D. unit of accounting.