A natural monopolist that sets prices equal to marginal cost will:
A. incur losses.
B. have zero profit.
C. still make a positive economic profit.
D. be government owned.
A. incur losses.
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The Ricardian proposition that international trade will benefit any country ("gains from trade") as long as the world terms of trade do not equal its autarkic relative prices is a straightforward and powerful concept
Nevertheless, it is impossible to demonstrate empirically. Why?
The Volcker Rule addresses the off-balance-sheet problem involving
A) trading risks. B) selling loans. C) loan guarantees. D) interest rate risks.
Between 1929 and 2009, the U.S. economy grew at an average annual rate of ________
a. 10.4 percent b. 7.9 percent c. 5.2 percent d. 3.3 percent
The conditions for long-run equilibrium include each of the following, except:
A. current inflation equals expected inflation. B. current inflation is steady and equals target inflation. C. current output equals potential output. D. imports equal exports.