Which of these is NOT a potential benefit provided by monopolies?
a. more variety of creative works such as movies and books
b. greater incentives to develop new technologies and medical cures
c. increased consumer surplus as a result of a smaller scale of operations
d. lower prices in industries with very large economies of scale
Answer: c. increased consumer surplus as a result of a smaller scale of operations
You might also like to view...
Why is the short-run demand curve for labor downward sloping?
What will be an ideal response?
Firms should lower the prices on their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and b
The unemployment rate of full-employment is also called the
A. cyclical rate of unemployment. B. natural rate of unemployment. C. frictional rate of unemployment. D. potential rate of unemployment.
The marginal revenue product of an input tends to decrease as:
A. the price of the input decreases. B. the price of output increases. C. productivity increases. D. more of the input is used.