Segway Corporation has a monopoly on its personal transporter, which is a scooter that carries one person. The company achieved its monopoly through the procurement of a patent. In spite of this advantage it has yet to turn a profit
One major impediment for the product is the existence of local ordinance around the country that prohibits the use of motorized scooters on sidewalks where the Segway might otherwise provide great utility to users. Where do you believe the demand curve is in relation to the average total cost? What do you believe the company's executives are banking on since they continue to stay in business even in the face of losses?
The demand curve clearly lies everywhere below the average total cost curve. The company's executives are probably banking on pushing the demand curve upward through advertising and marketing. They should probably be spending lobbying effort to convince local authorities to amend their ordinances. This could help with demand as well.
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With which choice are you more likely to avoid Bid-rigging cartels?
a. Holding oral auctions b. Holding Vickery auctions c. Holding sealed-bid auctions d. Both B&C
Moral hazard describes a scenario in which:
A. behaving morally produces a negative consequence. B. people behave more risky or renege on agreements when they do not face the full consequences of their actions C. people behave in a riskier fashion because they don’t understand the consequences of their actions. D. when people behave morally they put themselves in a hazardous situation.
Which of the following is a common way of measuring the average standard of living?
a. The unemployment rate plus the inflation rate b. Real GDP divided by the price level c. The unemployment rate multiplied by the population d. Real GDP divided by the population e. Inflation rate divided by the population
"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a
a. normative economic statement. b. positive economic statement. c. statement made by an economist working as a scientist. d. judgment based on evaluation of evidence, not values.