The existence of a natural monopoly stems from the size of the firm relative to the total market demand for the product of that firm.
Answer the following statement true (T) or false (F)
True
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Refer to Scenario 10.4. Suppose that the municipal stadium authority imposes a tax of $10 per ticket on the concert promoters. Given the information above, the profit maximizing ticket price would
A) increase by $10. B) increase by $5. C) not change. D) decrease by $5. E) decrease by $10.
When Argentina fixed the exchange rate of their peso to the U.S. dollar, one outcome was:
A. Argentinean central bankers regained control of their domestic interest rate. B. Argentinean central bankers were finally able to focus their attention on domestic monetary policy. C. Argentineans began using the U.S. dollar for all of their transactions. D. Argentinean central bankers effectively gave control of their domestic interest rate to the FOMC.
The explanation for the law of demand involves:
A. consumers' ability to substitute different goods. B. the government's ability to set prices. C. suppliers' ability to substitute inputs. D. the market's ability to equate supply and demand.
If a consumer doubles her quantity of ice cream consumed when her income rises by 25%, then her income elasticity of demand for ice cream is
A) 8.0. B) 4.0. C) .25. D) .08.