Which of the following is true under natural monopoly?
a. The marginal cost curve will be above the average cost curve.
b. The monopolist will set price equal to marginal cost and will earn economic profits.
c. Economies of scale exist.
d. Output is produced under conditions of constant cost.
c
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When a country's imports are larger than its exports, the country is running a trade deficit
Indicate whether the statement is true or false
Other things equal, when the U.S. dollar depreciates, domestic exports rise at every level of domestic income
a. True b. False Indicate whether the statement is true or false
The assumption that people act in their best self-interest means people
a. do what gives them the greatest benefits at the lowest costs. b. are selfish. c. do what gives them the smallest benefits at the greatest costs. d. are irrational.
Which of the following events will increase the domestic real interest rate in an open economy?
A. An increase in net capital inflow B. An increase in domestic saving C. A decrease in the domestic saving D. A decrease in the perceived riskiness of investing in the domestic economy