An unregulated natural monopoly is most likely to
A. Produce where marginal cost equals price.
B. Take advantage of the concept of marginal cost pricing.
C. Earn an economic profit.
D. Charge a lower price than if the same product were produced in a competitive market because of the monopolist's greater technical efficiency.
Answer: C
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A firm's economic profit includes all opportunity costs incurred by the firm
a. True b. False Indicate whether the statement is true or false
Assuming no change in the nominal exchange rate, how will a higher rate of inflation in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise. B) The real exchange rate will be unaffected. C) The real exchange rate will fall. D) The impact on the real exchange rate cannot be predicted.
Treasury bonds typically have lower coupon rates than corporate bonds because
A. There is a lower risk that the U.S. Treasury will default. B. The U.S. Treasury does not earn profits. C. Government regulations keep interest rates on Treasury bonds below market rates. D. The opportunity cost of purchasing Treasury bonds is lower than the opportunity cost of buying corporate bonds.
Which of the following goods is most likely to be overconsumed? Fish in:
A. the ocean B. the grocery store C. a fishery D. a pet store