Natural oligopolies occur when
a. the government establishes a market with a few large producers
b. the market output could be produced at a higher cost by several large firms rather than many small firms
c. there are no barriers to entry
d. the total market output could be produced at a lower cost by several large firms rather than many small firms
e. one large firm can produce the total market output at a lower cost than several smaller firms could
D
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Another term for stocks is equity.
Answer the following statement true (T) or false (F)
Which of following policies of the Congress was aimed to place the Fed above politics and maintain continuity in the policymaking process?
a. The President elects the entire Board of Governors. b. The Federal Reserve district banks elects the Board of Governors. c. The Congress elects a board member every five years. d. One board member's term expires every second year. e. Only bankers are allowed to be appointed as board members.
Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000Is it socially optimal for Quick Burger to operate a drive-through window?
A. Yes, because total payoffs are higher when Quick Burger operates a drive-through window. B. No, because The Sunshine Café's payoff is lower when Quick Burger operates a drive-through window. C. Yes, because Quick Burger's payoff is higher when Quick Burger operates a drive-though window. D. No, because total payoffs are higher when Quick Burger does not operate a drive-through window.
The spot rate is the rate at which foreign currencies will be exchanged a specified number of days in the future
Indicate whether the statement is true or false