When a second firm enters a monopolist's market:
A. the former monopolist's average cost decreases as its output level decreases.
B. the demand curve the former monopolist faces shifts to the left.
C. the market price rises as the average cost increases.
D. None of these
Answer: B
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A price ceiling might be an appropriate government response to a
a. period of falling farm prices due to unusually good harvests b. substantial increase in farm productivity due to marked applications of new technology in agriculture c. national security crisis leading to major shortages of essential goods d. period of extraordinary large surpluses of farm goods e. good in which the demand is considerably less than the supply
In the event that China rises, and the U.S. overcomes its setbacks and does not decline further, the situation may be similar to that seen in the Cold War, one of
a. bipolarity. b. unipolarity. c. anarchy. d. multipolarity
Compared to other industrial nations, the unionization rate of the U.S. labor force is relatively _______.
Fill in the blank(s) with the appropriate word(s).
In Figure 4.2, at quantities smaller than Q1:
A. total revenue is falling. B. price elasticity is greater than 1. C. price and total revenue are directly related. D. All of these