For a firm to be a natural monopoly, economies of scale must be realized at a scale that is close to total demand in the market.
Answer the following statement true (T) or false (F)
True
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Suppose the government wants to finance housing for low-income families by placing a tax on the purchase of luxury homes. Assume the government defines a luxury home as a home that is purchased for at least $1 million
This tax is consistent with the A) social equity principle. B) benefits-received principle. C) ability-to-pay principle. D) horizontal-equity principle.
Firms will continue to enter a competitive industry until: a. the supply curve is vertical
b. the market price falls below average variable cost. c. any economic profits have been competed away. d. all resources are fully employed.
Consider an economy where Y = $3,500 . C = $500 + (0.80Y), and where autonomous investment is equal to $200. a . Is this economy in equilibrium? Explain. b. What will happen if people try to increase their saving to $400
Which of the following best approximates a pure monopoly?
A. The foreign exchange market. B. The Kansas City wheat market. C. The only bank in a small town. D. The soft drink market.