Monopolists have an advantage over competitive markets in receiving the full benefit of research and development efforts.
Answer the following statement true (T) or false (F)
True
In principle, monopolies are well positioned to undertake valuable research and development because they are sheltered from the constant pressure of competition and they have the resources (monopoly profits) with which to carry out expensive R&D functions.
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Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs. Wanda's actions are an example of the
A) tax distorting costs of inflation. B) uncertainty costs of inflation. C) tax costs of inflation. D) shoe-leather costs of inflation. E) confusion costs of inflation.
According to your authors, the "boom-bust" cycle is primarily caused by
A) government tax and spend policies. B) an artificial lowering of interest rates through expansionary monetary policy. C) waves of irrational optimism and pessimism in the business community. D) a clash of interests among capitalists and laborers.
Assuming a 10-percent decrease in both the nominal (money) wage and the price level in the classical model, then the quantity of labor supplied will
a. also decrease by 10 percent. b. increase by 10 percent. c. remain constant. d. decrease by less than 10 percent.
The supply of loanable funds is determined by all of the following except
A. Risk. B. Time preferences. C. Demand for loanable funds. D. Interest rates.