Unlike perfectly competitive firms, monopolists can
a. earn positive short-run economic profit even if price is less than average variable cost at all rates of output
b. sell any quantity of output at any price they choose
c. earn long-run economic profits
d. reduce the sales of other firms in the industry through advertising
e. face a perfectly elastic demand curve
C
You might also like to view...
How much of the U.S. federal budget is spent on foreign aid?
a. About 1 percent. b. About 5 percent. c. About 25 percent. d. About 50 percent.
Government decisions tend to be biased toward actions that have
a. current costs and future benefits that are both easily observable. b. future costs that are difficult to identify and current benefits that are easily observable. c. future costs and future benefits that are both difficult to identify. d. current costs that are easily observable and future benefits that are difficult to identify.
An economic boom that creates an inflationary gap is usually followed later by
A. falling prices. B. a period of stagflation. C. an increase of potential GDP. D. an increase in aggregate supply.
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.