The demand for diet soft drinks (as a group) is relatively inelastic because
A) there are many of them on the market.
B) there are few substitutes.
C) the purchase of a soft drink represents a large portion of a person's budget.
D) none of the above.
B
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Refer to the figure above. If the average cost faced by the monopolist when it produces and sells the optimal output is $4, ________
A) it makes a loss of $60 B) it makes a loss of $120 C) it makes a profit of $60 D) it makes a profit of $90
A newspaper article in commenting on the local electric monopoly tells its readers that the company's dominant economic position as a monopolist allows it to produce whatever output level it desires and to set whatever price it wishes
Critically evaluate this position.
In the United States, federal efforts to clean up the environment are coordinated by the
a. Environmental Protection Agency b. Department of the Interior c. State Department d. Department of Agriculture e. Department of Justice
All students should go on to college.
A. True B. False C. Uncertain