It is possible for a monopolist to earn an economic loss.
Answer the following statement true (T) or false (F)
True
Monopoly power does not ensure that a firm will make economic profits.
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The O-ring theory places emphasis on
a. education of the labor force. b. skill complementarities. c. purchases of machinery and equipment by firms. d. none of the above.
The price system is constantly sending __________ and ___________ thousands of signals.
Fill in the blank(s) with the appropriate word(s).
If the market price is $6, what is the firm’s short-run economic profit?
a. $0 b. $15 c. $12 d. $18
If there are only two airlines that fly between Dallas and New Orleans, what will happen in the market for one airline if the other one goes out of business?
A. The demand curve will shift to the right. B. There will be a movement to the left along the initial demand curve. C. There will be a movement to the right along the initial demand curve. D. The demand curve will shift to the left.