If a firm has a downward-sloping long-run average cost curve over the entire range of market demand, it is a
a. local monopoly
b. resource monopoly
c. monopsony
d. output monopoly
e. natural monopoly
E
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The Troubled Asset Relief Program (or TARP) was introduced in order to:
A. reduce asset prices. B. reduce the government budget deficit. C. generate additional tax revenue. D. prevent the collapse of large financial institutions.
Adverse selection and moral hazard are not problems associated with market transaction
Indicate whether the statement is true or false
Holding everything else constant, as the price of natural gas rises, selling natural gas becomes
a. more profitable, and the quantity supplied falls b. less profitable, and the quantity supplied rises c. less profitable, and the quantity supplied falls d. more profitable, and the quantity supplied rises e. more profitable, but the quantity supplied does not change
A monopolistic competitor is surrounded by barriers to entry and need not fear the entry of new firms in the long run
a. True b. False Indicate whether the statement is true or false