Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes a marginal cost pricing rule, the firm provides service to
A) 3.5 million households.
B) 6 million households.
C) 10.5 million households.
D) 12.5 million households.
D
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From an initial steady state, suppose a government policy increases the national saving rate, causing the capital stock to start growing faster than the population. With (K/N) now rising, the Solow growth model goes on to say that (Y/N)
A) will rise only so far, to where the increased requirement for new capital matches the increased saving. B) will rise only temporarily, so long as the population growth rate remains constant. C) will rise and keep on rising, so long as the national saving rate exceeds the population growth rate. D) never does rise, since the government's policy does not affect either the population growth rate or the depreciation rate.
The Sherman Act prohibits:
a. contracts in restraint of commerce b. monopolization of an industry c. price discrimination d. a and b e. a, b, and c
Comparing the monopoly firm with a perfectly competitive firm reveals that:
a. the competitive firm sells less quantity. b. the monopoly firm charges a lower price. c. the competitive firm's price is above MC. d. None of these is revealed when the two firm are compared.
Which of the following statements is incorrect?
A. Changes in the composition of the population affect the demand for a product. B. As a greater fraction of the population becomes elderly, the demand for medical services will tend to increase. C. As the population rises, the market demand curve shifts to the right. D. None of the statements associated with this question are incorrect.