The social cost attached to monopolies is reflected by the fact that
A) monopolies produce more output than consumers desire to buy.
B) consumers pay prices that exceed the marginal cost of production.
C) the demand for a monopolist's product is always lower than the demand for the products of perfectly competitive firms.
D) consumers are always willing to pay lower prices for a monopolist's product than for the products of perfectly competitive firms.
Answer: B
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In Germany the three largest banks or Grossbanken are
A) commercial banks. B) savings banks. C) cooperative banks. D) specialized banks.
In 2009, Congress passed a bill that involved government spending increases and tax cuts with the purpose of stimulating the U.S. economy. This policy is an example of
A) an automatic stabilizer. B) contractionary fiscal policy. C) expansionary fiscal policy. D) expansionary monetary policy.
An advantage of proprietorships is
A) the ease with which they can be formed and dissolved. B) their ability to raise large amounts of equity capital. C) the fact that their profits are not taxed. D) the breadth of management expertise that comes from having a board of directors.
A negative demand shock would lead to a decline in both the price level and output in the short run
a. True b. False