The demand curve facing a monopolistic firm is
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: B
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A natural monopoly has _________, but will __________ if left unregulated
a. exclusive access to a natural resource; price competitively b. exclusive access to a natural resource; not maximize profit c. low average total cost; have high marginal costs d. low average total cost; charge a high price e. low average total cost; undercut its competitors
The study of microeconomics and macroeconomics differ in that:
a. microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy.
b. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy.
c. microeconomics studies the actions of households and macroeconomics studies the actions of business firms.
d. microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.
Which of the following allows us to determine the value of average consumption spending?
a. leading economic indicators
b. representative household analysis
c. indexing
d. ratio analysis
When the borrowing constraint is binding, ________
A) wealth is zero B) current consumption is lower than future consumption C) future consumption is lower than current consumption D) consumption smoothing is not possible