Why does the government allow some markets to be monopolized by granting patents?
a. to promote a more equal distribution of income
b. to correct for negative externalities
c. to promote technological progress
d. to ensure lower prices for consumers in the short run
c
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Sarah consumes pizzas and hamburgers. The price of a hamburger is $1 and the marginal utility from her last hamburger is 5. Let Pp be the price of a pizza and MUp be the marginal utility of pizzas
In consumer equilibrium, the ratio MUp/Pp for Sarah's last pizza must equal A) 0.2. B) 1.0. C) 5.0. D) infinity.
How does the goods market return to equilibrium if AE is less than production?
What will be an ideal response?
The existence of a natural monopoly stems from the size of the firm relative to the total market demand for the product of that firm.
Answer the following statement true (T) or false (F)
Basic economics indicates that the cornerstones of economic progress are
A) free elections, the right to bear arms, a written constitution, and a powerful head of state. B) private ownership, freedom of exchange, competitive markets, and monetary stability. C) representative democracy, a powerful chief executive office, protection of domestic business, and government regulation. D) centralized government, free elections, majority rule, and two legislative branches.