A bilateral monopoly is a
A) firm that is a monopsony in a resource market and a monopoly in a product market.
B) firm that is a monopoly in two product markets.
C) market in which a monopoly discriminates, setting a higher price for affluent customers.
D) market in which a monopsony bargains with a monopoly.
D
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In markets-oriented systems an under-performing "entrenched" management is often replaced by
A) SEC regulators. B) a hostile takeover. C) stockholders electing a new board of directors to fire the managers. D) the bank that owns the firm firing them.
Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of $50,000. What kind of firm is this?
A. This firm is a natural monopoly because as Q rises, AC falls. B. This firm is a natural monopoly because as Q rises, AC rises. C. This firm is a natural monopoly because as Q rises, VC falls. D. This firm is a natural monopoly because as Q rises, VC rises.
The higher the rate of unemployment:
a. The higher the level of potential GDP b. The higher the level of actual GDP c. The larger is the GDP gap d. The smaller is the GDP gap
External costs occur only with production and not consumption.
Answer the following statement true (T) or false (F)