According to the graph, if the perfectly competitive outcome and monopoly outcome are compared, we can see that the:
This graph shows the cost and revenue curves faced by a monopoly.
A. monopoly creates deadweight loss.
B. perfectly competitive firm would lose money in this industry.
C. perfectly competitive firm would produce Q1 units.
D. monopolist would charge P3 and the perfectly competitive firm would charge P1.
A. monopoly creates deadweight loss.
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Monetarists believe in all of the following except
a. steady growth in inflation will yield stable output. b. steady growth in the money supply will yield stable output. c. fluctuations in the money supply are responsible for business cycles. d. the Fed should not be involved in trying to stabilize the economy.
The most notable surfaced road of the 19th century, ___________, was built using federal government funds
a. the Cumberland Road b. the Wilderness Road c. the Natchez Trail d. the Forbes Road
Which of the following is one of the three main reasons for the spread of democracy?
a. Democratic regimes failed to deliver economic progress to the vast bulk of their populations. b. Economic advances in the past quarter-century have led to the emergence of a class of ruling elite c. New information and communication technologies have broken down the ability of the state to control access to uncensored information. d. Totalitarian regimes delivered economic progress to the bulk of their populations but not enough to the power brokers.
Explain the role of economies of scale in oligopoly.
What will be an ideal response?