Which of the following occurs as firm size grows?
A. A decrease in the number of managers needed.
B. A loss of opportunity cost.
C. Administrative and bureaucratic costs rise at an increasing rate.
D. A decrease in transaction costs.
Answer: C
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An economic problem with using subsidies or price ceilings to move a monopoly toward the competitive equilibrium is that
a. it may increase monopoly profits. b. it may decrease monopoly profits. c. policy makers may not be able to determine what the competitive equilibrium is. d. policy makers always need to be lobbied before taking any actions.
Private goods are those goods
A. that violate the principle of rival consumption. B. that can only be consumed by one individual at a time. C. for which no public market exists. D. to which the non-exclusion principle applies.
Until the 1990s, how was monetary policy typically conducted in advanced countries?
What will be an ideal response?
To maintain a monopoly, a firm must have
A) a perfectly inelastic demand. B) an insurmountable barrier to entry. C) marginal revenue equal to demand. D) few competitors.