Unlike a firm in pure competition, a monopolist may be able to
a. block the entry of new firms into the industry.
b. continue to earn economic profits in the long run.
c. earn economic profits in the short run.
d. both block the entry of new firms into the industry and continue to earn economic profits in the long run.
d. both block the entry of new firms into the industry and continue to earn economic profits in the long run.
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In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are
A) constant economies of scale. B) constant returns to scale. C) diseconomies of scale. D) economies of scale. E) constant diseconomies of scale.
If the price of product X falls and this change increases the demand for product Y, then
A) X and Y are complements. B) X and Y are substitutes. C) X is an inferior good. D) Y is an inferior good.
The four components of the aggregate expenditures model are:
a. consumption, investment, inventories, and government purchases. b. consumption, planned investment, unplanned changes in inventory, and exports. c. consumption, investment, government purchases, and net exports. d. consumption, investment, exports, and imports.
The goal of liberalism is to
a. redistribute income based on the assumption of diminishing marginal utility. b. redistribute income in order to improve the well-being of the worst-off person in society. c. punish crimes and enforce voluntary agreements but not to redistribute income. d. measure happiness and satisfaction.