Which of the following industries does not fit the natural monopoly model?
A. Fast food restaurants
B. Natural gas
C. Electricity
D. Cable TV
Answer: A
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Higher production indifference curves correspond to larger amounts of one input in relation to a second input.
Answer the following statement true (T) or false (F)
Stocks and bonds issued in banking-oriented systems are rather __________ because they are traded __________
A) liquid; frequently B) liquid; infrequently if at all C) illiquid; frequently D) illiquid; infrequently if at all
New Keynesian economists have examined whether real-world prices are, in fact, sticky. In one study of 38 magazines, Stephen Cecchetti found
a. that price rigidity was nonexistent with respect to magazines at newsstands. b. considerable rigidity with respect to the newsstand prices of magazines. c. that most of the 38 magazines in the study had price changes at least once a year. d. that the Readers Digest price was changed 15 times between 1950 and 1980.
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's profit at the profit maximizing sales price?
A. $30,000 B. $90,000 C. $120,000 D. -$30,000