Why is it that pure monopoly would not likely exist without government?
What will be an ideal response?
Pure monopoly is only possible if a firm is granted an exclusive franchise or license to operate in a particular industry. Without this privilege it is much more likely that the firm will face competitors and entry into the industry.
You might also like to view...
If you have $1,000 and the Gross Domestic Product (GDP) deflator increases from 100 to 120, then
A) the $1,000 will buy 20 percent less of the goods and services produced by society. B) the $1,000 will buy 20 percent more of the goods and services produced by society. C) the value of the $1,000 increases. D) you will be able to buy fewer goods, but the real value of those goods will increase.
Which statement is true about the graph above?
A. Equilibrium GDP is too big.
B. Equilibrium GDP is too small.
C. Equilibrium GDP is just the right size.
D. There is not enough information to determine whether or not equilibrium GDP is the right size.
Which of the following is the incorrect statement?
A. dB(Q)/dQ = MB. B. The marginal benefits curve is the slope of the total benefits curve. C. The slope of the net benefit curve is horizontal where MB = MC. D. The difference in the slope of the total benefit curve and the total cost curve is maximized at the optimal level of Q.
"Pork-barrel" legislation that contains funding for hundreds of earmarks throughout numerous states often reflects:
A. the paradox of voting. B. logrolling. C. the benefits-received principle. D. adverse selection.