When economies of scale are large relative to the quantity demanded in the market, it is called a(n):
a. natural monopoly.
b. legal monopoly.
c. artificial monopoly.
d. inevitable monopoly.
a. natural monopoly.
When economies of scale are large relative to the quantity demanded in the market, it is called a natural monopoly.
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The more diversification savers have the:
A. more willing they are to save money, and the more economic growth can occur. B. less willing they are to save money, and the more economic growth can occur. C. more willing they are to save money, and the less economic growth can occur. D. less willing they are to save money, and the less economic growth can occur.
Refer to Figure 10.9. Other things equal, a negative demand shock is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
One difference between moral hazard and adverse selection is
a. Adverse selection has to do with unobservable characteristics of individuals b. Moral hazard has to do with unobservable actions of individuals c. Adverse selection is individuals change their behaviors because of a contract d. Only A&B
Which of the following is the formula for the average product of labor?
A. F(L) - F(L - ?L) B. F(L)/L C. F(L)/?L D. [F(L) - F(L - ?L)]/?L