Why is the distinction between long run and short run less important in monopoly markets?
What will be an ideal response?
Because of barriers to entry, monopoly firms can continue to earn economic profit in the long run.
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A disadvantage of the corporate form of business organization is that corporate income is taxed twice
a. True b. False
Laws that assign owners the rights to use assets as they see fit are called
a. human rights. b. economic rights. c. property rights. d. government rights.
According to the graph shown, if the price were $15, a:
A. shortage would exist, signaling sellers to raise their price.
B. shortage would exist, signaling buyers to leave the market.
C. surplus would exist, signaling sellers to drop their price.
D. surplus would exist, signaling buyers to bid up the price.
AACSB: Analytical Thinking
Voluntary agreements about cleaning up pollution attempt to
A. internalize private costs. B. externalize private costs. C. internalize externalities. D. externalize social costs.