Which of the following situations is most likely to result in a producer monopoly?
a. A product for which quantity is low and demand is lower
b. A product for which quantity is high and demand is low
c. A product for which quantity is low and demand is high
d. A product for which quantity is high and demand is higher
a. A product for which quantity is low and demand is lower
If the quantity demanded in the market is less than the quantity at the minimum of the LRAC, a single-producer monopoly is a likely outcome.
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Domestic producers might oppose free trade agreements because
A. there could be a decrease in producer surplus. B. there could be an increase in consumer surplus. C. there could be an increase in producer surplus. D. there could be a decrease in consumer surplus.
Theory suggests that stock prices should be positively related to
A) government borrowing. B) the unemployment rate. C) the interest rate. D) the money supply.
The Keynesian approach to government economic policy: a. has emphasized the role of individual self-interest as a powerful stabilizing force. b. has consistently failed to reduce fluctuations in economic activity
c. was ineffective during the 1960s. d. highlighted the role of aggregate demand. e. was rechristened supply-side economics around 1980.
The real balance effect describes the change in
A) checking account balances that occur when the money supply increases or decreases. B) the value of physical assets (e.g., houses) that results from a change in the price level. C) the output producers produce as they attempt to balance their production in response to changes in consumers' demand. D) the value of cash holdings that results from a change in the price level. E) the balance of cash holdings that results from a change in the amount of income earned.