Natural monopolies are most likely to arise when firms have:
A. low start-up costs and low marginal costs.
B. high start-up costs and high marginal costs.
C. low start-up costs and high marginal costs.
D. high start-up costs and low marginal costs.
Answer: D
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Economists generally assume that the firm's goal is to
a. minimize its costs. b. maximize its profit. c. make its market share as large as possible. d. maximize its production.
Which of the following is an example of human capital?
A) a computer B) a college education C) a factory building D) a software program
The equilibrium price level
a. determines by how much the AD curve shifts b. is inversely related to the nominal wage rate c. is influenced by the pricing behavior of all the firms in the economy d. is unaffected by changes in resource costs e. is the same thing as the interest rate
In the Coen Brothers' movie The Hudsucker Proxy the board of directors picks someone to run the company who they believe will make poor decisions. If things turn out as they plan,
a. the price of a share of stock in the Hudsucker corporation should decline as the demand for shares falls. b. the price of a share of stock in the Hudsucker corporation should rise as the demand for shares rises. c. the price of a share of stock in the Hudsucker corporation should decline as the supply of existing shares falls. d. the price of a share of stock in the Hudsucker corporation should rise as the supply of existing shares rises.