The two basic reasons why a monopoly exists are barriers to entry and cost advantages.
Answer the following statement true (T) or false (F)
True
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The consumption function shows that when disposable income increases by one dollar, consumption expenditure
A) does not change. B) increases by more than a dollar. C) increases by one dollar. D) decreases by less than a dollar. E) increases by less than a dollar.
In the above figure, what is the efficient quantity of pretzels to produce each day?
A) one hundred B) two hundred C) three hundred D) four hundred
Suppose a tax is imposed on each new hearing aid that is sold. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. As a result of the tax, the equilibrium quantity of hearing aids decreases from 10,000 to 9,000 . and the deadweight loss of the tax is $60,000 . We can conclude that the tax on each hearing aid is
a. $60. b. $120. c. $160. d. $200.