If a new seller enters a market to compete with an existing natural monopoly, it will:
A) decrease the costs for both the sellers.
B) increase the costs of production for both the sellers.
C) increase the production costs for the existing seller, and a decrease in the costs for the new entrant.
D) decrease the production costs for the existing seller, and an increase in the costs for the new entrant.
B
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The marginal propensity to consume is always
A) equal to zero. B) less than one. C) equal to one. D) greater than one.
If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?
a. Her marginal tax rate is 18 percent in this range. b. Her marginal tax rate is 30 percent in this range. c. Her average tax rate was 22.5 percent when her income was $40,000. d. The tax structure must be regressive in the range between $40,000 and $50,000.
If the product produced by workers experiences a decrease in demand, the value of marginal product of labor will:
A. decrease, increasing the demand for labor. B. increase, increasing the demand for labor. C. decrease, decreasing the demand for labor. D. increase, decreasing the demand for labor.
The value of a country's currency, in terms of some other country's currency, is called
A. the exchange rate. B. the stock exchange. C. the nominal interest rate. D. dollarization.