A simple way of describing the social cost of monopoly is to say that it
A) produces too much.
B) makes too much money.
C) has too much political power.
D) restricts output and charges a higher price than a perfectly competitive firm.
D
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Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result
A) the economy will move up along the long-run aggregate supply curve. B) the long-run aggregate supply curve will shift to the right. C) the long-run aggregate supply curve will shift to the left. D) the economy will move down along the long-run aggregate supply curve.
In sequential games, an especially important part of strategic behavior is to:
A. "think backward, work forward." B. "think forward, work backward." C. "think forward, act backward." D. "think backward, act forward."
The patent system is intended to: a. prevent natural monopolies from unfairly exploiting their cost advantages. b. reward innovators by granting them temporary monopolies
c. spread information among firms as quickly and economically as possible. d. give small businesses a competitive edge over larger businesses.
Setting the prime rate of interest is an example of
A. price leadership. B. cutthroat competition. C. covert collusion. D. strong competition.