In the long run, a monopoly
A. will yield an efficient outcome.
B. may earn positive economic profits due to entry barriers.
C. will always earn zero economic profits.
D. will never exit the industry.
Answer: B
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The Coase Theorem implies that the reason people sue each other in court is that transactions costs are too high.
Answer the following statement true (T) or false (F)
Classify the following as positive economics statements or normative economics statements
a) An increase in an individual's income increases consumption, but by an amount less than the increase in income. b) The government should undertake the responsibility of providing healthcare to all its citizens. c) A trade deficit can be advantageous to an economy. d) An increase in net exports has a positive effect on a country's national income. e) The gross domestic product of India is increasing at 5% annually.
The value of a loan of $500 after a year at 3 percent interest is:
A. $509. B. $515. C. $565. D. $1,500.
If oligopolistic firms successfully cooperate with each other, _____
a. they may act like a monopoly and increase their prices b. they may act like a monopoly and increase their output c. they may act like perfectly competitive firms and earn normal profits d. they may act like a monopolistic firm and earn economic profits