Which of the following is NOT a barrier to entry for a monopoly?
A) economies of scale for the relevant range of output
B) a patent on the product being sold
C) the ability to charge a price that is above marginal cost
D) receiving a public franchise
C
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Which situation is consistent with the law of diminishing marginal benefit?
A. Joe's marginal benefit from eating pizza reaches a maximum when total benefit is zero. B. The more pizza Joe eats, the less he enjoys an additional slice. C. The more pizza Joe eats, the more he enjoys an additional slice. D. Joe's marginal benefit from eating pizza becomes positive after eating three slices.
One advantage of a managed float exchange rate system compared to a floating exchange rate system is
A) it allows the exchange rate to reflect demand and supply in the market. B) there is no need for government intervention. C) it allows greater exchange rate stability. D) it eliminates the possibility of depreciation during a recession.
Setting price equal to marginal cost in a natural monopoly will lead to
A. excess profits for the firm. B. losses for the firm. C. zero profits for the firm. D. One cannot tell without further information.
A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts. 
Given the above info, if the cost of a stolen radio is $25, what is the MOST the firm would be willing to pay to hire the first security guard?
A. $200 B. $250 C. $750 D. $500