Which of the following statements is TRUE?
A) All monopolists are perfect price discriminators.
B) All monopolists earn short-run economic profits.
C) A monopolist will leave the market if it incurs an economic loss in the long run.
D) A monopolist does not need barriers to entry to sustain a long-run economic profit.
C
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Suppose the government imposes a small carbon tax on automakers. But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production
In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply. The result is that the price of autos will ________ and the number of autos sold will ________. A) rise; perhaps change but we can't say if it increases, decreases, or stays the same B) rise; increase C) rise; decrease D) fall; perhaps change but we can't say if it increases, decreases, or stays the same E) fall; decrease
An environmental protection agency in Eduland has launched a campaign against the use of plastic bags. This is an example of ________
A) backward induction B) indoctrination C) anchoring D) sniping
In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person
A) are technological advances. B) is lower current consumption. C) is higher current consumption. D) is a larger work force.
Which of the following is not an argument in favor of the globalization of business?
A) More efficient use of resources lowers operating costs and selling prices. B) More products are made available and new markets are opened. C) Economic and political security are enhanced. D) Technology transfers improve living standards in poorer countries.