The government forcing a monopoly telecommunications company to allow other firms to use its cables is an attempt to
A) regulate prices.
B) decrease the monopoly market power by eliminating a natural monopoly.
C) decrease the monopoly market power by increasing competition.
D) None of the above.
C
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Use the following production possibilities frontiers to answer the next question.
Curve (a) is the initial frontier for the economy, and the nation is initially producing combination P. A shift from curve (a) to curve (b) suggests that the economy can then increase its production of capital goods
A. so as to produce the combination L. B. and consumer goods simultaneously, except at the point where the curve intersects the vertical axis. C. but will have to hold constant its production of consumer goods. D. only if it reduces its production of consumer goods.
Suppose you see a 2012 Ford Mustang GT advertised in the local newspaper for $15,000. If you knew the car was reliable, you would be willing to pay $17,000 for it. If you knew the car was unreliable, you would only be willing to pay $12,000 for it
Under what circumstances should you buy the car?
Cost-benefit principles can be applied to the decision of:
a. profit-maximizing firms. b. majority-rule voting. c. which project receives the most votes. d. rational ignorance. e. all of these.
A good economic theory is always more useful when it includes detailed facts, even if the facts are not relevant to the questions being investigated
a. True b. False Indicate whether the statement is true or false