Compared to a single-price monopoly, the output of a perfectly competitive market with the same costs
A) is more than the monopoly's output.
B) is the same as the monopoly's output.
C) is less than the monopoly's output.
D) could be more than, less than, or equal to the monopoly's output.
A
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Refer to the above figures. Externalities exist in both panels. After correcting for the externalities the prices should be
A) P1 and P3. B) P1 and P4. C) P2 and P4. D) P2 and P3.
A market tends to be monopolistic if
a. The good has too many substitutes b. The good has very few substitutes c. There are too many rivals d. The good has too few complements
If a country with a large government debt uses money creation to service and repay the debt, this will lead to
a. lower interest rates. b. an appreciation of the nation's currency in the foreign exchange market. c. inflation, higher interest rates, and a financial crisis. d. rapid economic growth, as the expansionary monetary policy stimulates the economy and generates the additional tax revenue to service the larger debt.
The idea of government failure includes all of the following except:
A) bureaucratic inefficiency. B)extensive positive externalities from public and quasi-public goods. C) special-interest effect. D) pressure by special-interest groups.