A firm will buy monopoly power until the marginal cost of having a monopoly:
A. is more than the marginal benefit.
B. is less than the marginal benefit.
C. equals the marginal benefit.
D. equals the price of its product.
Answer: C
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Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?
a. A production point outside the curve may be attained if new resources are discovered. b. A production point outside the curve may be attained by acquiring a new technology. c. A production point outside the curve may be attained by shifting resources to defense goods. d. A production point outside the curve may be attained by acquiring both a new technology and greater resources. e. A production point outside the curve cannot be attained with the current level of resources and technology.
A monopoly exists because of
a. barriers to entry b. the large number of buyers and sellers c. the absence of barriers to entry d. collusion among the dominant firms e. the absence of exclusive government franchises
Which of the following statements is not true? To acquire Bitcoins, an individual can:
a. Trade for them. b. Buy them. c. Mine them by solving a Bitcoin-generated computer algorithm. d. Borrow them at any local Bitcoin bank. e. All of the statements above are true.
If two goods are substitutes, then their cross-price elasticity of demand is
A. between zero and minus one. B. negative. C. positive. D. zero.