Which of the following is true?
A. Monopolists never lose money regardless of short-run or long-run.
B. Monopolies can be overcome by market forces or by government action.
C. The most efficient output is found where MC and MR cross.
D. The automobile industry is an example of a monopoly.
B. Monopolies can be overcome by market forces or by government action.
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The profits from firms who engage in first-degree price discrimination are_____.
A. price-gouging their customers B. showing increased opportunity costs C. less than firms who do not use price discrimination D. equal to consumer surplus
Which of the following is true?
a. Tangible goods are subject to economic analysis but intangible goods are not b. Intangible goods are just an alternative term for services. c. Goods and services can be made costless by having the government give them away to citizens. d. All goods and services, whether tangible or intangible, are made from scarce resources and are subject to economic analysis.
Suppose the marginal propensity to consume is 0.80 and taxes decrease by $10 billion. Which of the following is true?
a. Disposable income and consumption fall by $10 billion b. Disposable income and consumption rise by $10 billion c. Disposable income rises by $10 billion and consumption rises by $8 billion d. Disposable income falls by $10 billion and consumption falls by $8 billion e. Disposable income rises by $10 billion and consumption falls by $8 billion
You are about to open a business and must obtain a license from the city for $25,000. The license is transferable, but only $4,000 is refundable in the event the firm does not use the license.
a. What are your fixed costs? What are your sunk costs? b. Suppose the manager obtains a license but then decides against opening the business. If another firm offers the manager $3,000 for the license, should the manager accept the offer?