A local electricity-generating company has a monopoly that is protected by an entry barrier that takes the form of
A) a perfectly inelastic demand curve. B) economies of scale.
C) control of a key raw material. D) network externalities.
B
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The American manufacturing system began to emerge in the years prior to the Civil War. Which of the following was not an important aspect of the system?
(a) Extensive or increased use of craftsmen (b) Mass production of goods in factories (c) The production of standardized goods (d) Extensive use of machinery and equipment
Raiman's Shoe Repair also produces custom-made shoes. When Mr. Raiman produces 12 pair a week, the MC of the twelfth pair is $64, and the MR of that unit is $70 . What would you advise Mr. Raiman to do?
a. shut down b. produce more custom-made shoes c. stay at 12 pairs a week d. produce fewer custom-made shoes e. decrease price
The original (1958 ) Phillips curve differed from the Samuelson-Solow Phillips curve in that
A) the former was based on American data, while the latter was based on British data. B) the former measured price inflation rates, while the latter used wage inflation rates. C) the former was based on British data, while the latter was based on American data. D) the former measured nominal GDP, while the latter used Real GDP. E) a and b
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $30, you would expect that the price of sunglasses would
A. rise to $60, where quantity demanded equals quantity supplied. B. rise to $90, so the firm could meet its excess demand. C. remain at $30, because firms would not want to increase the price. D. rise, but the new price is indeterminate from the information provided.