Which of the following is an example of a barrier to entry? (i) A key resource is owned by a single firm. (ii) The costs of production make a single producer more efficient than a large number of producers. (iii) The government has given the existing monopolist the exclusive right to produce the good
a. (i) and (ii) only
b. (ii) and (iii) only
c. (i) only
d. (i), (ii), and (iii)
d
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What is the quantity theory of money?
What will be an ideal response?
You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults
You tell your supervisor that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
If a firm has an accounting profit of $2,350,000 and implicit costs totaling $150,000 . then its economic profit equals
a. $2,350,000 b. $2,500,000 c. $2,200,000 d. $150,000 e. $2,000,000
Suppose that financial market participants expect that the central bank will pursue a monetary expansion in the future. Also assume that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?
A) The yield curve will become steeper. B) i2t will increase. C) i2t will decrease. D) The yield curve will become downward sloping.