Natural monopolies have U-shaped cost curves.
A. True
B. False
C. Uncertain
B. False
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The term "opportunity cost" points out that
A) there may be such a thing as a free lunch. B) not all individuals will make the most of life's opportunities because some will fail to achieve their goals. C) executives do not always recognize opportunities for profit as quickly as they should. D) any decision regarding the use of a resource involves a costly choice.
Government transfer payments act as automatic stabilizers because as labor income decreases, transfer payments
a. decrease as well. b. remain constant. c. increase. d. to the government increase.
Which statement is false?
A. Under the United States' economic system, most of the important decisions are made in the market place. B. In the United States' economy the price mechanism determines the answers to the United States' three basic questions-what, how, and for whom. C. Most economists would agree that the price system leads to a very efficient allocation of resources. D. None of these statements are false.
The elasticity of demand can change with
A. the time available to shift to other alternatives. B. the number of close substitutes. C. neither a) nor b). D. both a) and b).