A market which only allows only one firm to operate at lowest average cost is called a(n)
a. natural monopoly.
b. scale industry.
c. increasing returns industry.
d. large scale industry.
A
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Albro Martin (1971) argues that the Interstate Commerce Commission (1887–1995) was captured by its customers, not the railroad industrialists
Other researchers like Gabriel Kolko (1965) highlight the involvement of railroad industrialists in capturing this government agency to serve a cartel role, too. Indicate whether the statement is true or false
Markets fail when externalities are present
a. because all of the costs and benefits of producing a good are reflected in the market price. b. because some of the costs and benefits of producing a good are not reflected in the market price. c. only if they are negative; positive externalities are not market failures. d. because profits are not maximized. e. if the positive externalities are less than the negative externalities.
According to the modern expectational Phillips curve, unemployment will temporarily fall below the natural rate of unemployment when
a. any inflation is present. b. inflation turns out to be lower than what people expected. c. inflation turns out to be higher than what people expected. d. inflation turns out to be equal to what people expected.
Every value in a payoff matrix represents the:
A. gain or loss of a decision for each player given the decisions of other players. B. gains and losses of decisions for each player regardless of the decisions of other players. C. best possible outcomes of various players in a game. D. worst possible outcomes of various players in a game.