A monopolist would probably earn fewer profits if
A) the importance of specialized capital equipment in its production techniques increased.
B) the time length of patents increased.
C) environmental regulations increased that required the purchase of special capital equipment.
D) tariffs on competing products were lowered.
Answer: D
You might also like to view...
Technological progress will
A) shift the LAS curve rightward but will not shift the SAS curve. B) not shift either the LAS or the SAS curve. C) shift both the LAS and SAS curves rightward. D) shift the SAS curve rightward but will not shift the LAS curve.
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Tom should:
A. keep his shop going because he's earning a healthy $35,000 a year. B. keep his shop going because he's earning $5,000 more than his salary before. C. close his shop and go back to what he was doing before with his time and assets, because it was earning him $6,000 more than he's earning now. D. None of these is true.
A disadvantage of the corporate form of business organization is
A. double taxation. B. unlimited liability for shareholders. C. limited access to capital. D. that the corporation can only do business in the state where it was incorporated.
The monetarists believe
A. the Federal Reserve is very effective at fighting inflation. B. the key to stable economic growth is a constant rate of increase in the money supply. C. expansionary monetary policy will permanently reduce the interest rate. D. the money supply must increase at the same rate as the price level.