If a monopolist owns or controls a key resource necessary for production, it is a source of:
A) legal market power.
B) natural market power.
C) regulated market power.
D) restricted market power.
B
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If the average total cost curve is always above the demand curve of a monopolist: a. that monopolist will suffer economic losses
b. entry will occur, forcing the monopolist to reduce price and expand output. c. the monopolist will earn an economic profit. d. the monopolist must be producing inefficiently.
Economists disagree about whether increasing the minimum wage is a good idea, because they put different weight on the importance that the negative impacts have relative to the positive impacts. As such, the disagreements are usually over
a. normative issues b. positive issues c. the mathematical calculations in an economic model d. whether microeconomics or macroeconomics is more important e. whether economic theory is useful in explaining the behavior of actors in the economy
If your taxable income rises from $35,000 to $45,000, and the taxes you pay rise from $12,000 to $15,000, your marginal tax rate is
A. 10 percent. B. 20 percent. C. 30 percent. D. 40 percent. E. Impossible to determine.
What is meant by the term "credit easing"?
A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity. B) It is a strategy which involves keeping interest rates very low by providing substantial reserves for as long as is necessary to avoid deflation and encourage spending. C) It is a strategy which involves lowering the required reserve ratio and lowering the federal funds rate to encourage banks to increase loan creation. D) It is a strategy which involves allowing interest rates to rise slowly by providing substantial reserves for as long as is necessary to avoid inflation.