Cross-subsidizationimplies that a loss from one product’s sales will be made up by the profit from another product’s sales.
Answer the following statement true (T) or false (F)
True
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According to the misperceptions theory, short-lived shocks may have long-term effects on the economy because of
A) multiplier effects. B) propagation mechanisms. C) accelerator effects. D) automatic stabilizers.
In order for a natural monopoly to develop, it
A. is important that the firm be very large. B. is important that the firm prices its product below cost. C. is not the absolute size of the firm but its size relative to the total market demand that is important. D. must be in the presence of government intervention.
A firm's marginal and average costs may differ in the long and short run because:
A. in the short run all inputs are fixed. B. in the long run all inputs are fixed. C. in the short run all inputs are variable. D. in the long run all inputs are variable.
Most of the poverty in this country can be traced to
A. the recession that began in 1990. B. the heritage of slavery. C. five decades of social and economic change. D. the War on Poverty.