Encouraging formation of monopolies provides firms an incentive to:
A) innovate.
B) increase social surplus.
C) hire less resources in production.
D) decrease deadweight loss.
A
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As the term “opportunity cost” is defined in the text, the opportunity cost of going to college includes
A. both tuition and the value of the student’s time. B. tuition but not the value of the student’s time, which is a cash cost. C. the value of the student’s time but not tuition, which is a monetary cost. D. neither tuition nor the value of the student’s time, since obtaining a college degree makes one’s income higher in the future. E. neither tuition nor the value of the student’s time, at least at subsidized state universities.
Of the $840 billion American Recovery and Reinvestment Act stimulus package which was enacted in 2009, approximately ________ took the form of tax cuts and ________ took the form of increases in government expenditures
A) one-third; two-thirds B) one-tenth; nine-tenths C) one-half; one-half D) three-fourths; one-fourth
Backloaded compensation makes the wage profile increase at a decreasing rate
Indicate whether the statement is true or false
Because the demand for a perfectly competitive firm's product is perfectly elastic, marginal revenue is equal to
A) one. B) zero. C) the price of the product. D) negative one.