A natural monopoly is likely to arise when:
a. the government restricts entry through licensing
b. patents provide protection of intellectual property.
c. economies of scale exist over the relevant range of demand.
d. a firm controls a crucial input to production.
c
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Refer to Figure 5-7. The marginal cost of reducing pollution curve is the same curve as
A) the demand for pollution reduction curve. B) the value of pollution reduction curve. C) the negative externality curve. D) the supply of pollution reduction curve.
Since 1950, there has been ____ in the labor force participation rate
a. no change b. an increase c. a decrease d. first an increase and then a significant decrease
Which of the following shifts the aggregate demand curve rightward?
A) a decrease in government expenditure on goods and services B) a decrease in consumption C) an increase in investment D) a decrease in net exports
Which of the following is an endogenous variable in our model of the goods market in Chapter 3?
A) consumption (C) B) disposable income (YD) C) saving (S) D) total income (Y) E) all of the above