If a single firm can meet the entire market demand at a lower average total cost than a larger number of smaller firms, the single firm is
A) price discriminating.
B) a natural monopoly.
C) a legal monopoly.
D) efficient when profit maximizing.
E) an ownership-of-the-market monopoly.
B
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Which seller is "selling short"?
A) Colleges that require the entire term's tuition prior to the first day of class B) A magazine that sells you a two-year subscription C) A major league baseball team that sells you a season ticket D) They are all selling short. E) None is selling short because all are reducing their risks.
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half the government issues two transferable pollution permits to each firm (a cap and trade policy). What is the total cost savings to society of decreasing pollution to half its present level if firm C buys one pollution permit from firm A and one pollution permit from firm B compared to if there were a government mandate for each firm to cut pollution by one-half?
A. $515 B. $1,300 C. $1,380 D. $965 E. $1,025
Consumption spending is __________ and investment spending is __________ in the Keynesian model
A) autonomous; autonomous B) autonomous; induced C) induced; autonomous D) induced; induced
The law of demand shows that there is
A) an inverse relationship between price and profit. B) an inverse relationship between price and resource cost. C) an inverse relationship between price and quantity demanded. D) a direct relationship between price and quantity demanded.