A monopoly is most likely to emerge and be sustained when:
A. economies of scale are large relative to market demand.
B. firms have U-shaped average total cost curves.
C. output demand is relatively elastic.
D. fixed capital costs are small relative to total costs.
Answer: A
You might also like to view...
Which of the following was signed in the Kyoto Protocol?
A) the Framework Convention on Climate Change B) the Zero Greenhouse Gas Agreement C) the Treaty on Global Warming D) the Emission Trading Scheme
Assume that we want to drive our economy out of recession by generating a $400 billion change in national income. The MPC is 0.8 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?
a. $120 billion increase in government spending and $50 billion increase in tax revenue b. $140 billion increase in government spending and $70 billion increase in tax revenue c. $160 billion increase in government spending and $120 billion increase in tax revenue d. $220 billion increase in government spending and $100 billion increase in tax revenue e. $400 billion increase in government spending and $300 billion increase in tax revenue
Which of the following statements about the real loanable funds market is not true?
a. Movements in the real risk-free interest rate cause significant changes in borrowers' willingness and ability to tap the domestic credit market if the demand is highly inelastic. b. The more inelastic a nation's supply of real loanable funds, the less sensitive domestic savers, banks, foreigners, and governments are to changes in the real risk-free interest rate. c. Monetary policy is usually stronger in nations with elastic real loanable funds demands. d. Fiscal policy is usually weaker in nations with elastic loanable funds demands. e. All of the above are true.
On a graph with time on the horizontal axis and real GDP per capita on the vertical axis, the income levels of poorer countries are
A. diverging more from the incomes of rich countries. B. maintaining a constant gap with the incomes of richer countries. C. crossing the line representing richer countries. D. coming closer to the line representing richer countries.