If the natural monopoly shown in the figure above is unregulated, it will make an economic profit of
A) $2 million.
B) $4 million.
C) $9 million.
D) $0, that is, it earns a normal profit.
A
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________ is the total value of final goods and services produced within the borders of a country, using current market prices to determine the value of each unit that is produced
A) Gross national product B) Real gross domestic product C) Nominal gross domestic product D) Total product
Explain the difference between nominal GDP and real GDP. Which is more important when using GDP as a measure of production? Why?
What will be an ideal response?
How does the federal government provide public goods and reduce the number of free riders?
a. Requiring tax payments b. Acquiring private firms c. Investing in education d. Protecting patents
When the money market is drawn with the value of money on the vertical axis, if the price level is below the equilibrium level, there is an
a. excess demand for money, so the price level will rise. b. excess demand for money, so the price level will fall. c. excess supply of money, so the price level will rise. d. excess supply of money, so the price level will fall.