If only one firm operates in a market, and a potential entrant is blockaded from entering the market, then the incumbent firm must
A) have acted to prevent entry
B) be pricing where price equals marginal cost
C) be a natural monopoly
D) be the Stackelberg leader
C) be a natural monopoly
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The demand curve for pizza is downward sloping and the supply curve is upward sloping. If the government imposes a $2 tax on a pizza, ________ the tax
A) only consumers pay B) only producers pay C) both producers and consumers pay part of D) neither producers nor consumers pay part of E) the government pays
When is disclosure economically desirable?
In the early decades of the U.S. economy, the primary purpose of taxation was to
a. pay off accumulated debt. b. cover the cost of government services. c. redistribute income and wealth. d. stabilize economic activity.
We say that a particular life saving method is efficient
a. if it requires very few resources b. if it requires many resources c. if total expenditures on that method are low d. if the cost per life year saved is very high e. if the cost per life year saved is very low