The primary reason why a monopoly can make a long-run economic profit is the existence of
A) barriers to entry.
B) inelastic demand.
C) price discrimination.
D) many buyers.
A
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Mutual interdependence applies to actions of
a. monopolistic competitors b. oligopolists c. perfect competitors d. monopolists and oligopolists e. only oligopolist firms operating in different industries
Suppose antitheft auto alarms are produced in a price-taker market that is initially in long-run equilibrium. It is estimated that only 23 percent of all autos have alarms. Due to rising auto theft, Congress mandates alarms in every vehicle. Assume complete compliance. If the industry is an increasing cost industry, price will
a. increase in both the short run and long run. b. decrease in both the short run and long run. c. increase in the short run but not in the long run. d. decrease in the short run but not in the long run.
Stagflation is:
A. low economic growth, despite low inflation and low unemployment. B. high inflation along with low economic growth and high unemployment. C. high unemployment, despite low inflation and low economic growth. D. high inflation despite low economic growth and low unemployment.
The unemployment rate is the:
A. ratio of unemployed to employed workers. B. number of employed workers minus the number of workers who are not in the labor force. C. percentage of the labor force that is unemployed. D. percentage of the total population that is unemployed.