In general, with a monopolist's outcome:
A. deadweight loss occurs.
B. consumers lose surplus.
C. monopolies earn profit.
D. All of these statements are true.
Answer: D
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The Federal Reserve System is owned by
a. federal government agencies such as the Treasury b. the Congress of the United States c. the banks that are members of the Federal Reserve System d. the legislatures of all 50 states e. people who have deposits in member banks
The firm's short-run supply curve runs up the _______ curve beginning at the _________.
Fill in the blank(s) with the appropriate word(s).
Market failures include all of the following EXCEPT
A) buyers pay for all the costs involved in the production of goods and services. B) public goods. C) positive externalities. D) negative externalities.
Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is TRUE?
A) The production function has decreasing returns to scale. B) The production function has increasing returns to scale. C) The production function has constant returns to scale. D) Returns to scale vary with the level of output.