It is possible that if a monopoly is broken up, the cost of production for that product could increase
a. True
b. False
Indicate whether the statement is true or false
True
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What are the three factors that define a household budget constraint. Explain
What will be an ideal response?
A monopolist maximizes total revenue at the quantity where marginal revenue equals zero
a. True b. False
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is:
a. above the labor supply curve under perfect competition. b. the market supply curve of labor. c. below the labor supply curve under perfect competition. d. changed because workers are now more willing to supply labor. e. perfectly horizontal.
A new U.S. tariff on imported steel would be likely to: a. raise the cost of production to steel-using American firms. b. generate tax revenue to the government
c. increase U.S. production of steel. d. all of the above